Coups d’état and the cost of debt

  title={Coups d’{\'e}tat and the cost of debt},
  author={Hippolyte Weneyam Balima},
  journal={Journal of Comparative Economics},
  • H. Balima
  • Published 13 May 2020
  • Economics
  • Journal of Comparative Economics
Abstract This paper extends the literature on the economic consequences of coups d’etat by examining their impact on the cost of debt for sovereigns and, respectively, the likelihood of experiencing a sovereign default. Using a monthly panel dataset covering 134 countries over the period 1990 to 2014 and after employing the entropy balancing methodology, I find that the occurrence of coups d’etat significantly increases the cost of debt for sovereigns and their likelihood of experiencing… 
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