I present a political-economic theory to explain bailouts for failing firms in the presence of
non-voters (foreigners). The governing politician uses the bailout to sway voters to maximize …

We study the political economy of loan guarantees within a credit-rationing framework. In
this framework, a government uses guarantees to decrease the borrowing cost, thus making …

We study the redistributive role of government guarantees, which channel funds from non-
investors to investors, in a democracy where both investors and non-investors vote. We …

A failing firm employs domestic and foreign stakeholders. The latter have no voting rights. A
politician decides on the vote-share maximizing bailout. In a probabilistic voting model, I …