Hatchondo, Juan Carlos; Martinez, Leonardo; Sapriza, Horacio - In: International Economic Review 50 (2009) 4, pp. 1129-1151
We extend the model used in recent quantitative studies of sovereign default, allowing policymakers of different types to stochastically alternate in power. We show that a default episode may be triggered by a change in the type of policymaker in office, and that such a default is likely to...