This paper studies how local governments choose between debt and tax financing for public investment. Adapting Williamson’s governance framework to public finance, it shows that financial instability reshapes financing choices. Evidence from France’s structured-loan crisis reveals a shift away from borrowing toward self-financing, highlighting the governance nature of local funding decisions.

This paper provides the first cross-country evidence on the short-term impact of ENSO climate shocks on banking sector stability. Using dynamic panel data for 51 countries (2000–2020), we show that El Niño significantly reduces distance-to-default, especially in Latin America. Rising non-performing loans emerge as the main transmission channel. 

This paper is the first to jointly examine private credit and public debt across business-cycle and medium-run horizons. Using data for high- and upper-middle-income countries (1970–2018), it shows that credit booms fuel crises and weak recoveries, especially with high public debt, and that financial deepening’s growth benefits fade—or reverse—at advanced stages.

This policy brief  is the first to apply the Marginal Value of Public Funds framework to class-size reduction. Using French administrative data, it shows that primary school class splitting is likely self-financing in the long run, while secondary reductions still generate positive net social returns despite greater uncertainty.