Broner, Fernando A.; Lorenzoni, Guido; Schmukler, Sergio L. - Barcelona Graduate School of Economics (Barcelona GSE) - 2004
We argue that emerging economies borrow short term due to the high risk premium charged by international capital markets on long-term debt. First, we present a model where the debt maturity structure is the outcome of a risk sharing problem between the government and bondholders. By issuing...