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 …

We develop a sovereign debt model with offcial and private creditors where default risk depends on both the level and … presence of long-term debt overhang, the availability of offcial 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 …

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 …

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 …, output low, or a cross default more likely. These predictions are consistent with empirical evidence. …

In this paper, the author considers the sovereign debt in the form of one-period government bonds with default risk …'s propensity to repay the debt and is denoted as α, also determines the default risk: a higher α means a lower default risk ceteris … the default risk as well as the corresponding risk premium is observed. …

and sovereign default. We analytically characterize debt-GDP thresholds that foster cooperation among rent seeking groups … and avoid default. Our analysis and application helps in understanding the politico-economic sustainability of sovereign …

In this paper, the author considers sovereign debt in the form of one-period government bonds with default risk, which … debt share also determines the default risk: a higher domestic debt share means a lower default risk, ceteris paribus …, which leads to a lower risk premium; while a lower domestic debt share means a higher default risk and a higher risk premium …