Plausibly Exogenous [1057] - Toxic Loans (12/23/2022)
LHS Variable
Government investment and taxes
RHS Variable
Public debt burden
Source of Exogenous Variation
Variation in the ex post cost of toxic loans, a notorious financial innovation adopted by a large number of local governments
- Sauvagnat and Vallee (2021), “The Effects of Local Government Financial Distress: Evidence from Toxic Loans”