This paper studies whether countries benefit from servicing their debts during times of widespread sovereign defaults. Colombia is typically regarded as the only large Latin American country that did not default in the 1980s. Using archival research and formal econometric estimates of Colombia's...

This study investigates the effect of debt adjustment for bad debts on debt repayment and discusses the optimal principal reduction rate. We use a logit model and propensity score matching, employing the unique dataset of creditors’ ledger, debt adjustment information, and debtors’...

As a response to economic crises triggered by COVID-19, sovereign debt standstill proposals emphasize debt payment suspensions without haircuts on the face value of debt obligations. We quantify the effects of standstills using a standard default model. We find that a one-year standstill...

As a response to economic crises triggered by COVID-19, sovereign debt standstill proposals emphasize debt payment suspensions without haircuts on the face value of debt obligations. We quantify the effects of standstills using a standard default model. We find that a one-year standstill...

For a debtor to obtain a discharge of student loans in bankruptcy, the debtor must establish that their repayment would impose an undue hardship. This Article presents the results of an empirical study of bankruptcy court doctrine over a ten-year period that involved undue hardship discharge...

Outstanding student loan indebtedness in the United States exceeds $1.67 trillion and it is projected to exceed $2 trillion by 2021 or 2022 (varying by source). The United States has decided that broad access to higher education is an important social policy, and a decision has been made to...

Recent increase in P2P lending prompted for development of models to separate good and bad clients to mitigate risks both for lenders and for the platforms. The rapidly increasing body of literature provides several comparisons between various models. Among the most frequently employed ones are...

As a response to economic crises triggered by COVID-19, sovereign debt standstill proposals emphasize debt payment suspensions without haircuts on the face value of debt obligations. We quantify the effects of standstills using a standard default model. We find that a one-year standstill...

As a response to economic crises triggered by COVID-19, sovereign debt standstill proposals emphasize debt payment suspensions without haircuts on the face value of debt obligations. We quantify the effects of standstills using a standard default model. We find that a one-year standstill...

The COVID-19 pandemic has worsened the financial positions of many companies. For the next months, a wave of insolvencies, a zombification caused by rescue measures or a debt deleveraging are on the table. Which of the three scenarios will dominate, depends, however, on the efficiency of...