This chapter is on quantitative models of sovereign debt crises in emerging economies. We interpret debt crises broadly …

We assess the quantitative relevance of expectations-driven sovereign debt crises, focusing on the Southern European … countries. We find that expectations-driven debt crises are quantitatively relevant but state dependent, as they only occur …

We present a simple model of sovereign debt crises in which a country chooses its optimal mix of short and long … incentives to engage in debt dilution, the country must issue short-term debt. This exposes it to roll-over crises and … maturity in the event of crises, and show that both necessarily improve ex ante welfare if they do not decrease expected …