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 gains from default induced redistribution against the cost of defaulting. Ex ante, the government issues debt of …

unless the perceived probability of default is too small. Nevertheless, at low ratings this relevance can be weakened by an …

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 …