Broner, Fernando; Lorenzoni, Guido; Schmuckler, Sergio - Society for Economic Dynamics - SED - 2006
-term debt. First, we present a model where the debt maturity structure is the outcome of a risk sharing problem between the … government and bondholders. By issuing long-term debt, the government lowers the probability of a rollover crisis, transferring … government faces a trade-o¤ between safer long-term debt and cheaper short-term debt. Second, we construct a new database of …