External and Public Debt Crises / Cristina Arellano, Andrew Atkeson, Mark Wright.

Format:

Book

Author/Creator:

Arellano, Cristina.

Contributor:

National Bureau of Economic Research.

Atkeson, Andrew.

Wright, Mark.

Series:

Working Paper Series (National Bureau of Economic Research) no. w21456.

NBER working paper series no. w21456

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

The recent debt crises in Europe and the U.S. states feature similar sharp increases in spreads on government debt but also show important differences. In Europe, the crisis occurred at high government indebtedness levels and had spillovers to the private sector. In the United States, state government indebtedness was low, and the crisis had no spillovers to the private sector. We show theoretically and empirically that these different debt experiences result from the interplay between differences in the ability of governments to interfere in private external debt contracts and differences in the flexibility of state fiscal institutions.

Notes:

Print version record

August 2015.