Many states in Latin America, Africa and Asia lack the monopoly of violence, identified by Max Weber as the foundation … establishment of the monopoly of violence and the formation of the state. We build a model to explain the incentive of central …

This paper compares the equilibrium dynamics of an economy facing an aggregate collateral constraint on external debt … central finding of the paper is that the economy with the aggregate borrowing limit does not generate higher levels of debt …

Government guarantees of private debt deplete equity. The depletion is greatest during periods when the probability of … debt up to the limit the government permits. Declines in asset values raise debt in relation to asset values and thus … deplete equity directly, under the realistic assumption that the government is unable to enforce rules calling for marking …

We examine the differential impact of portfolio debt, portfolio equity, and FDI inflows on 37 manufacturing industries … cross-sectional regressions of manufacturing industries' growth rates covering 17 years. Net portfolio debt inflows are … negatively associated with growth during the mid 1990s. The magnitudes of the negative effect of surges in portfolio debt inflows …

government debt. The safest governments inefficiently restrict the amount of high quality debt that could be used as collateral …We analyze contagious sovereign debt crises in financially integrated economies. Under financial integration banks … optimally diversify their holdings of sovereign debt in an effort to minimize the costs with respect to an individual country …

We analyze government interventions to alleviate debt overhang among banks. Interventions generate two types of rents … optimal instruments. Minimizing macroeconomic rents requires the government to condition implementation on sufficient …

We develop a dynamic model of debt runs on a firm, which invests in an illiquid asset by rolling over staggered short …-term debt contracts. We derive a unique threshold equilibrium, in which creditors coordinate their asynchronous rollover … the roles played by volatility, illiquidity and debt maturity in driving debt runs, as well as on firms' capital adequacy …

without commitment. This policy features a state-contingent macroprudential debt tax that is strictly positive at date t if a …, removes fat tails from the distribution of returns, and increases social welfare. In contrast, constant debt taxes are …

-by-country basis. In addition to public debt, we trace out the evolution of its composition between domestic and external borrowing …. Total external debt (public and private) and domestic credit are also included through 2013. This combination gives a broad …