This paper uses a new dataset to study the relationship between economic output and sovereign default for the period 1820-2004. We fi?nd a negative but surprisingly weak relationship between output and default. Throughout history, countries have indeed defaulted during bad times (when output was...

This paper uses a new dataset to study the relationship between economic output and sovereign default for the period 1820-2004. We find a negative but surprisingly weak relationship between output and default. Throughout history, countries have indeed defaulted during bad times (when output was...

In this essay we review the empirical literature about sovereign debt and default. As we survey the work of economists, historians, and political scientists, we also emphasize parallel developments by theorists and recommend steps to improve the correspondence between theory and data.

This paper examines the relationship between default on sovereign borrowing and the expropriation of foreign direct investment in both theory and in practice.

This paper examines the relationship between default on sovereign borrowing and the expropriation of foreign direct investment in both theory and in practice.