Rose, Andrew (contributor); Spiegel, Mark (contributor) - 2002 - [Elektronische Ressource]
, sovereigns behave as if they consider
default costly. Many models of sovereign debt in the literature [e.g. Bulow and Rogoff … interruption of international trade as a
mechanism for sovereign debt repayment. If one believes that the primary penalties for …
enforcing sovereign debt obligations are trade related, then creditors originating from nations
with strong bilateral trade …