We build a dynamic model of international borrowing and default that can rationalize the dynamics of spread and the maturity composition of debt in the data. The spread curve reflects the dynamics of the endogenous probability of default that is persistent yet mean reverting because of the...

In this paper, we use data from developing countries to argue that sovereign defaults are often caused by fiscal pressures generated by large-scale domestic defaults. We argue that these systemic domestic defaults are caused by shocks best interpreted as being non-fundamental. We construct a...

In this paper we revisit two well-known facts regarding lifecycle expenditures. The first is the familiar "hump" shaped lifecycle profile of nondurable expenditures. We document that the behavior of total nondurables masks surprising heterogeneity in the lifecycle profile of individual...