cases filed against defaulting sovereigns. We find that creditors are more likely to litigate in large debt restructurings … economies and those with a low legal capacity). We conclude that sovereign debt lawsuits can be predicted reasonably well with a …

The public debt overhang spread across advanced countries, and the reform of the Stability and Growth Pact in the Euro … Zone, have revived the polarization between those who think that debt is always good and those who think that debt is … always bad. This paper presents a normative model of endogenous growth with debt-financed public capital. It is shown that no …

recent subprime mortgage crisis. Why did the financial markets fail to anticipate the recent debt crisis, despite the large … capital gain, the return on capital and the interest rate. An optimal debt ratio is derived where the drift is probabilistic …, does not depend upon the actual debt/net worth per se. Instead it increases in proportion to the difference between the …

leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals … crisis ; optimal leverage and debt ratios ; Congressional Oversight Panel ; Case-Shiller index …

when investment is debt-financed. In such a case a firm pays the creditor not only the sum of annual interest (initial … the investment is debt-financed, the interest payment additionally reduces the corporate tax base. The research findings … optimum debt maturity tends to correlate positively with the corporate tax rate but negatively with the interest rate. In the …

world. This literature includes empirical evaluations of how past climatic events have affected fiscal outcomes, empirical …

the interactions between public debt and real output growth in a multicountry setting, and the results are compared to … of the rate of change of debt-to-GDP. Evidence on the degree of cross-sectional dependence in these variables and their … framework. It is found that posterior median debt elasticity with respect to output is much larger when the rise in output is …