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Sovereign Debt: A Review / Mark Aguiar, Manuel Amador.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Aguiar, Mark.
Contributor:
National Bureau of Economic Research.
Amador, Manuel.
Series:
Working Paper Series (National Bureau of Economic Research) no. w19388.
NBER working paper series no. w19388
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Sovereign Debt
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2013.
Summary:
In this chapter, we use a benchmark limited-commitment model to explore key issues in the economics of sovereign debt. After highlighting conceptual issues that distinguish sovereign debt as well as reviewing a number of empirical facts, we use the model to discuss debt overhang, risk sharing, and capital flows in an environment of limited enforcement. We also discuss recent progress on default and renegotiation; self-fulfilling debt crises; and incomplete markets and their quantitative implications. We conclude with a brief assessment of the current state of the literature and highlight some directions for future research.
Notes:
Print version record
August 2013.

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