extensions upon restructurings: income recovery after default, credit exclusion after restructuring, and regulatory costs of book …

This paper presents a theoretical model of strategic default to assess how national and international policymakers … should seek to influence the cost of default and the distribution of bargaining power in the event of a default. We find that …, in the absence of restrictions on the parameter space, deadweight costs of default should be driven to zero. Moreover, if …

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

find that policy-induced exogenous increases in US rates raise default risk in emerging market economies, as hypothesised … real interest rates and reduce the risk of default dominate the hypothesised relationship. We can only conclude that it …

-specific fiscal shocks. Differences in the cyclicality of fiscal revenues affect the option value of borrowing and resulting default …

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