Quantitative models of sovereign debt predict that countries should default during deep recessions. However, empirical … research on sovereign debt has found a surprisingly large share of "good times" defaults (i.e., defaults that happen when GDP … results that are closer to the predictions of standard quantitative models of sovereign debt. …

solvency in developing and emerging countries. Next, the paper asks whether countries default because they borrow too much, or … because investors think that they will default and this expectation becomes self-fulfilling. To answer this question, the …

events are surprisingly frequent, exceeding the number of sovereign bond or Paris Club restructurings. Chinese lenders follow …. We construct an encompassing dataset of sovereign debt restructurings with Chinese lenders and find that these credit …

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 …

A vast and growing empirical literature aims at identifying key determinants of sovereign default. The literature is … of sovereign default? We use a variant of Extreme Bound Analysis (EBA) to examine if any of the conclusions from the … existing studies on the determinants of sovereign default is robust to small changes in the conditioning information set. Our …

limited commitment. The government of a sovereign country which has fallen into a recession of an uncertain duration issues … default threat, creditors can make a take-it-or-leave-it debt haircut offer to the sovereign. The risk of renegotiation is …Motivated the European debt crisis, we construct a tractable theory of sovereign debt and structural reforms under …

ended up being partial defaults; sovereign debt level became unsustainable when it rose above 60-90 % of GDP; default trough …This article provides a historical overview of the factors leading up to debt crises and the default methods used by … Spanish economy’s ability to borrow, the central government’s debt affordability and the profile of the sovereign debt the …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of … 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 by …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Ex post, the government trades off … the gains from default induced redistribution against the cost of defaulting. Ex ante, the government issues debt of …-distorting. The optimal maturity structure minimizes the expected costs due to opportunistic behavior ex post. It matches the maturity …