Endowments, fiscal federalism, and the cost of capital for states: evidence from Brazil, 1891-1930 by André C. Martínez Fritscher and Aldo Musacchio published by NBER (10/2009). “In the last few years there has been an explosion in the number of papers that aim to explain what determines country risk (defined as the difference between the yield of a sovereign’s bonds and the risk free rate)…”
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