We develop a sovereign debt model with official and private creditors where default risk depends on both the level and … presence of long-term debt overhang, the availability of official funds increases the probability of default on existing debt …, although default does not trigger exclusion from private credit markets. These findings help shed light on joint default and …

A vast and growing empirical literature aims at identifying key determinants of sovereign default. The literature is … of sovereign default? We use a variant of Extreme Bound Analysis (EBA) to examine if any of the conclusions from the … existing studies on the determinants of sovereign default is robust to small changes in the conditioning information set. Our …

one-period debt and can renege on its obligations by suffering a stochastic default cost. When faced with a credible … default threat, creditors can make a take-it-or-leave-it debt haircut offer to the sovereign. The risk of renegotiation is …

the time-path of consumption. Altruism towards parents influences incentives to default. If altruism is low, voters demand … human capital discourages investment in private and public capital. The threat of default enters as a constraint that may …

This article provides a historical overview of the factors leading up to debt crises and the default methods used by … ended up being partial defaults; sovereign debt level became unsustainable when it rose above 60-90 % of GDP; default trough …

default induced redistribution and costs due to income losses in the wake of a default. Their choice of short- versus long …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … low, or a cross default more likely. These predictions are consistent with empirical evidence. …

default induced redistribution and costs due to income losses in the wake of a default. Their choice of short- versus long …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … low, or a cross default more likely. These predictions are consistent with empirical evidence. …