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Economic Analysis and Infrastructure Investment
Glaeser, Edward L.; Poterba, James M. - 2021
This paper summarizes economic research on investment in public infrastructure and introduces the findings of several new studies on this topic. It begins with a review of several potential justifications for the public sector’s involvement in building, financing, and operating infrastructure,...
Persistent link: https://www.econbiz.de/10013248702
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Serial Default and the "Paradox" of Rich to Poor Capital Flows
Reinhart, Carmen M. - 2012
Lucas (1990) argued that it was a paradox that more capital does not flow from rich countries to poor countries. He rejected the standard explanation of expropriation risk and argued that paucity of capital flows to poor countries must instead be rooted in externalities in human capital...
Persistent link: https://www.econbiz.de/10013116221
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Fundamentals and Sovereign Risk of Emerging Markets
Aizenman, Joshua - 2013
We empirically assess the relative importance of various economic fundamentals in accounting for the sovereign credit default swap (CDS) spreads of emerging markets during 2004-2012, which encompasses the global financial crisis of 2008-2009. Inflation, state fragility, external debt, and...
Persistent link: https://www.econbiz.de/10013083389
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How Sovereign is Sovereign Credit Risk?
Longstaff, Francis A. - 2008
We study the nature of sovereign credit risk using an extensive sample of CDS spreads for 26 developed and emerging-market countries. Sovereign credit spreads are surprisingly highly correlated, with just three principal components accounting for more than 50 percent of their variation....
Persistent link: https://www.econbiz.de/10012773185
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Transparency, Risk Management and International Financial Fragility
Draghi, Mario - 2003
Discussions of financial risk often fail to distinguish between risks that are consciously borne and those that are not. To understand the breeding conditions for financial crises the prime focus of concern should not be simply on large risk-taking per se, but on the unintended, or unanticipated...
Persistent link: https://www.econbiz.de/10012786498
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Sovereign Risk Contagion
Arellano, Cristina - 2017
We develop a theory of sovereign risk contagion based on financial links. In our multi-country model, sovereign bond spreads comove because default in one country can trigger default in other countries. Countries are linked because they borrow, default, and renegotiate with common lenders, and...
Persistent link: https://www.econbiz.de/10012943181
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External Debt, Capital Flight and Political Risk
Alesina, Alberto F. - 2010
This paper provides an explanation of the simultaneous occurrence of large accumulation of external debt, private capital outflow and relatively low domestic capital formation in developing countries. We consider a general equilibrium model in which two types of government with conflicting...
Persistent link: https://www.econbiz.de/10012763021
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When is There a Strong Transfer Risk from the Sovereigns to the Corporates? Property Rights Gaps and CDS Spreads
Bai, Jennie - 2014
When a sovereign faces the risk of debt default, it may be tempted to expropriate the private sector. This may be one reason for why international investment in private companies has to take into account the sovereign risk. But the likelihood of a transfer from the sovereign risk to corporate...
Persistent link: https://www.econbiz.de/10013054883
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What Segments Equity Markets?
Bekaert, Geert; Harvey, Campbell R.; Lundblad, Christian T. - 2021
We propose a new, valuation-based measure of world equity market segmentation. While we observe decreased levels of …
Persistent link: https://www.econbiz.de/10013223903
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World Income Components : Measuring and Exploiting International Risk Sharing Opportunities
Shiller, Robert J.; Athanasoulis, Stefano - 2021
We provide methods of decomposing the variance of world national incomes into components in such a way as to indicate … eigenvectors of a variance matrix of residuals produced when country incomes are regressed on world income. Another method uses a … matrix of deviations of country incomes from their respective contract-year shares of world income. The two methods are …
Persistent link: https://www.econbiz.de/10013224942