, multiple equilibria with stable and unstable solutions at intermediate debt, and a single solution with dissuasively high risk … commodity export to GDP ratio, the size of growth shocks, the share of defaults in neighbouring countries, the risk-free rate … and investors’ risk aversion. Debt limits are highly sensitive to the expected recovery rate, reflecting the importance of …

on default risk are also investigated, showing that the rule of law, regulatory quality, control of corruption and voice … and accountability are also robustly linked with default risk. Regressions with the mortality of settlers as an instrument …