This paper examines empirical issues on asymmetric effects of government spending. Increases in government spending … work on US data, using threshold regression models, provides new evidence that an expansionary government spending is more …

This paper investigates how government debt affects exchange rate behavior. In a two-country general …-equilibrium setting, it shows that the exchange rate is directly related to the effective price of public debt. Changes in the present … mean-preserving increase in the variance of future fiscal policy affects current consumption, prices, current accounts, and …

This paper studies the different economic configurations that may give rise to incomplete fiscal decentralization, with … and cannot monetize national or sub-national government deficits. The question is whether dollarization is a commitment …? Does incomplete fiscal decentralization arises in equilibrium? We obtain two different sets of equilibria as result of a …

following issues: (i) the role of fiscal policy in risk-sharing, and (ii) the suitability of a common currency area between …

this question this paper builds on two ideas. First, the prospect of future debt relief can make it profitable for an IFI … contracts in order to accumulate debt. When the debt stock becomes sufficiently large, it can be used as an “hold upâ …

composition of debt in Japan and Russia at the turn of the nineteenth century. …

determine the country's ability to continue its debt servicing in the future. If the sovereign undertakes an unsound economic … policy it will repudiate its debt with certainty; otherwise it will repudiate its debt with some positive probability. In our …