Aguiar, Mark (contributor); Gopinath, Gita (contributor) - 2004
large scale sovereign defaults on a number
of occasions, the most recent being Argentina’s default in 2002. In this paper we ….
On the other hand, a shock to trend growth has a large impact on the two value functions
(because of the shock’s …
t+1
,g
t+1
)} (7)
s.t. c
t
= y
t
+a
t
−q
t
a
t+1
The international capital market consists of risk neutral investors …