Income distribution, sovereign debt, and public investment Article

Karayalçin, C, McCollister, K. (2005). Income distribution, sovereign debt, and public investment . ECONOMICS & POLITICS, 17(3), 351-365. 10.1111/j.0954-1985.2005.00157.x

cited authors

  • Karayalçin, C; McCollister, K

authors

abstract

  • We develop a political economy model of sovereign debt that shows that income inequality leads to popular pressures on the government to use foreign debt to finance a redistribution of income at the expense of productive public investment. Recognizing this fact, international lenders impose credit ceilings with the consequence that developing country borrowers invest less and grow slower. © Blackwell Publishing Ltd 2005.

publication date

  • November 1, 2005

published in

Digital Object Identifier (DOI)

start page

  • 351

end page

  • 365

volume

  • 17

issue

  • 3