D'Erasmo, Pablo N.; Mendoza, Enrique G. - 2016
-insurance, liquidity and risk-sharing. The government’s aim to redistribute resources across agents and through time in response to …, the default decision, and risk premia. Calibrated to Spanish data, the model is consistent with key cyclical co …, are preceded by surging debt and spreads, and occur with relatively low external debt. Default risk limits the sustainable …