Aizenman, Joshua; Hutchison, Michael; Jinjarak, Yothin - Economics Department, University of California-Santa … - 2011
We estimate the pricing of sovereign risk for sixty countries based on fiscal space (debt/tax;deficits/tax) and other economic fundamentals over 2005-10. We measure how accurately themodel predicts sovereign credit default swap (CDS) spreads, focusing in particular on the fivecountries in the...