from a financial recession using a model that can account for the observed default and leverage dynamics during the … account for the observed default and leverage dynamics. Following an adverse aggregate shock, banks deleverage through two …

productivity. A quantitative model of news and sovereign debt default with endogenous maturity choice generates impulse responses …-term debt does not shield the country from bad news shocks, and it may even exacerbate default risk. Finally, an increase in the …

whether or not to default impacts the incentives of other agents to escape default. Agents' payoffs are determined by the … equilibrium of this default game. Next, we develop an algorithm to find all Nash equilibria that relies on the financial network …

specify default, renegotiation and reorganization policies. Renegotiation entails a redistribution of social surplus, while … reorganization takes the form of enhanced creditor monitoring. Firms with better contract histories are less likely to default, but …, contingent on default, firms with better outside options successfully renegotiate, in line with the empirical evidence. Unless …

extensions upon restructurings: income recovery after default, credit exclusion after restructuring, and regulatory costs of book …