Cruces, Juan J.; Trebesch, Christoph - In: American Economic Journal: Macroeconomics 5 (2013) 3, pp. 85-117
A main puzzle in the sovereign debt literature is that defaults have only minor effects on subsequent borrowing costs and access to credit. This paper comes to a different conclusion. We construct the first complete database of investor losses (“haircutsâ€) in all restructurings with...