I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … revenue losses on inframarginal units of debt that reflect the price impact of these decisions. The model predicts an interior …

economic exchanges since they face the possibility that debt default might also spill over to hinder their non …

10% per annum, the drop in trend growth of as much as 4% is insufficient to deter reneging. Debt relief generally … improves the relative attractiveness of debt repayment. With a 10% discount rate, however, even writing off 75% of India …'s external debt fails to make debt repayment incentive-compatible. …

of change of nominal depreciation. We examine the composition of the debt as well as its level, and a variety of other …; and the level of foreign interest rates is high. A low ratio of foreign direct investment to debt is consistently …

Securitization of LDC debt would significantly aid the international debt problem by increasing liquidity and expanding …

This paper analyzes the inefficiency that arises from a debt overhang. In order to define the lenders' optimal … discounted value return coincides with the equilibrium market value of the debt. Rather than a debt write-off, the key to an …

state and regulators are not necessarily independent. Among other things, we show that firms invest more, issue more debt …

leveraged banks’ precautionary demand for liquidity. When adverse asset shocks materialize, a bank’s ability to roll over debt …

further loans to help service the debt. Since deposits are mainly short-term and loans are long-term, the short-run demand for …