extensions upon restructurings: income recovery after default, credit exclusion after restructuring, and regulatory costs of book …

productivity. A quantitative model of news and sovereign debt default with endogenous maturity choice generates impulse responses …-term debt does not shield the country from bad news shocks, and it may even exacerbate default risk. Finally, an increase in the …

debt contract is limited? Contrary to conventional wisdom, we argue that temporary market exclusion after default is costly … government's market power mitigates the problem of limited commitment, by making default a more costly option. Consequently, it …

puzzles about sovereign default and the working out of defaults. We conclude by suggesting possible avenues for new research …

. I analyze the value of a default-risky sovereign bond in a setting in which foreign trade is reduced in case the country …

financial assistance has counteracting effects on the default incentives of governments. On the one hand, financial assistance … accumulate higher debt levels. To assess the overall effect of financial assistance on the probability of default we construct a … quantitative model of endogenous credit structure and sovereign default that allows for self-fulfilling expectations of default …

This paper presents a theoretical model of strategic default to assess how national and international policymakers … should seek to influence the cost of default and the distribution of bargaining power in the event of a default. We find that …, in the absence of restrictions on the parameter space, deadweight costs of default should be driven to zero. Moreover, if …

This paper studies the effect of implementing fiscal rules on sovereign default risk and on the probability of large …