(i.e., debt-to-asset ratios are specific to each borrower and time-varying). I model and parameterize these ratios … the source of debt which is most sensitive to shocks is foreign funding. In fact, any shock creates a wedge between the …

In this paper we empirically explore the relationship between debt and output in a panel of 72 countries over the … predicted by a standard small open economy model by Aguiar and Gopinath (2007), where debt and output endogenously respond to … total factor productivity (TFP) shocks. First, developing countries' debt falls after a positive output shock, while the …

This paper tests the effect of sovereign debt structure on default likelihood. Sovereign debt structure is identified … likelihood of default. The results provide evidence that bilateral loans, short term debt, and bank loans increase the likelihood … of default. Results also show that foreign currency denominated debt reduces default likelihood. The study provides …

an informational advantage over private lenders in the market for sovereign debt. I show that the adverse selection … country welfare. However, with lending the private information of the agency will be revealed whatever its weighting of … borrower welfare vs. private lenders' profits. Multilateral lending on concessional terms also alleviates the moral hazard …

Although the sovereign debt crisis is worldwide considered as a main disorder affecting indebted countries' economic … pathological mechanism, which doubles the debt incurred by any country that is forced to finance through a foreign loan its overall … implemented by any one country and that, by preventing the double charge of its external debt, would allow its government to …

There is a perception that IMF programmes are not catalytic and instead associated with large capital outflows, higher … effects of IMF programmes may deter countries from asking for an IMF programme when they need one, a form of ‘IMF stigma'. We … materialise and how past experience with adverse market reactions affects subsequent IMF programme participation. Our results …