Book contents
- Rethinking Fiscal Policy after the Crisis
- Rethinking Fiscal Policy after the Crisis
- Copyright page
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Acknowledgements
- 1 Introduction and Overview
- Part I Frontiers of Fiscal Policy
- Part II Better Institutions for Better Fiscal Policy
- Part III New Analytical Perspectives
- 10 Problems with Deficit Accounting
- 11 Fiscal Policy and Financial Distress: A Balance Sheet Perspective
- 12 Financial Cycles and Fiscal Cycles
- 13 Fiscal Sustainability and the Financial Cycle
- 14 Calibrating the Cost of Defaulting in Models of Sovereign Defaults
- Part IV The Comeback of Discretionary Fiscal Policy
- Book part
- Index
- References
14 - Calibrating the Cost of Defaulting in Models of Sovereign Defaults
from Part III - New Analytical Perspectives
Published online by Cambridge University Press: 19 May 2017
Edited by
Book contents
- Rethinking Fiscal Policy after the Crisis
- Rethinking Fiscal Policy after the Crisis
- Copyright page
- Contents
- Figures
- Tables
- Boxes
- Contributors
- Acknowledgements
- 1 Introduction and Overview
- Part I Frontiers of Fiscal Policy
- Part II Better Institutions for Better Fiscal Policy
- Part III New Analytical Perspectives
- 10 Problems with Deficit Accounting
- 11 Fiscal Policy and Financial Distress: A Balance Sheet Perspective
- 12 Financial Cycles and Fiscal Cycles
- 13 Fiscal Sustainability and the Financial Cycle
- 14 Calibrating the Cost of Defaulting in Models of Sovereign Defaults
- Part IV The Comeback of Discretionary Fiscal Policy
- Book part
- Index
- References
Summary
A summary is not available for this content so a preview has been provided. Please use the Get access link above for information on how to access this content.
- Type
- Chapter
- Information
- Rethinking Fiscal Policy after the Crisis , pp. 414 - 440Publisher: Cambridge University PressPrint publication year: 2017
References
Adler, G. and Sosa, S. (2013). External Conditions and Debt Sustainability in Latin America. IMF Working Paper No. 13/27.Google Scholar
Aguiar, M. and Gopinath, G. (2006). Defaultable debt, interest rates and the current account. Journal of International Economics, 69, 64–83.Google Scholar
Aguiar, M. and Gopinath, G. (2007). Emerging markets business cycles: the cycle is the trend. Journal of Political Economy, 115(1), 69–102.CrossRefGoogle Scholar
Amador, M. (2012). Sovereign Debt and the Tragedy of Commons. Manuscript, Stanford University.Google Scholar
Arellano, C. (2008). Default risk and income fluctuations in emerging economies. American Economic Review, 98(3), 690–712.Google Scholar
Arellano, C. and Ramanarayanan, A. (2012). Default and the maturity structure in sovereign bonds. Journal of Political Economy, 120(2), 187–232.Google Scholar
Azzimonti, M. (2011). Barriers to investment in polarized societies. American Economic Review, 101(5), 2182–204.CrossRefGoogle Scholar
Azzimonti, M., Battaglini, M. and Coate, S. (2010). On the Case for a Balanced Budget Amendment to the US Constitution. Mimeo, Princeton University.Google Scholar
Bianchi, J., Hatchondo, J. C. and Martinez, L. (2012). International Reserves and Rollover Risk. NBER Working Paper No. 18628.Google Scholar
Blanchard, O. (2011). Rewriting the Macroeconomists’ Playbook in the Wake of the Crisis. IMFdirect, https://blog-imfdirect.imf.org/2011/03/04/2662/Google Scholar
Blanchard, O., Dell’Ariccia, G. and Mauro, P. (2010). Rethinking Macroeconomic Policy. IMF Staff Position Note 10/03.Google Scholar
Boz, E. (2011). Sovereign default, private sector creditors, and the IFIs. Journal of International Economics, 83, 70–82.CrossRefGoogle Scholar
Chatterjee, S. and Eyigungor, B. (2012) Maturity, indebtedness and default risk. American Economic Review, 102(6), 2674–99.Google Scholar
Chatterjee, S. and Eyigungor, B. (2015). A seniority arrangement for sovereign debt. American Economic Review, 105(12), 3740–65.Google Scholar
Claessens, S., Mody, A. and Vallée, S. (2012). Paths to Eurobonds. IMF Working Paper No. 12/172.Google Scholar
Cole, H., Dow, J. and English, W. (1995). Default, settlement, and signaling: lending resumption in a reputational model of sovereign debt. International Economic Review, 36(2), 365–85.Google Scholar
Cowan, K., Levy-Yeyati, E., Panizza, U. and Sturzenegger, F. (2006). Sovereign Debt in the Americas: New Data and Stylized Facts. Inter-American Development Bank, Working Paper No. #577.Google Scholar
Cruces, J. J., Buscaglia, M. and Alonso, J. (2002). The Term Structure of Country Risk and Valuation in Emerging Markets. Manuscript, Universidad Nacional de La Plata.CrossRefGoogle Scholar
Cuadra, G. and Sapriza, H. (2008). Sovereign default, interest rates and political uncertainty in emerging markets. Journal of International Economics, 76, 78–88.Google Scholar
D’Erasmo, P. (2008). Government Reputation and Debt Repayment in Emerging Economies. Manuscript, University of Texas at Austin.Google Scholar
Dias, D. A. and Richmond, C. (2009). Duration of Capital Market Exclusion: An Empirical Investigation. Working Paper, UCLA.Google Scholar
Durdu, C. B., Nunes, R. and Sapriza, H. (2013). News and sovereign default risk in small open economies. Journal of International Economics, 91(1), 1–17.Google Scholar
Eaton, J. and Gersovitz, M. (1981). Debt with potential repudiation: theoretical and empirical analysis. Review of Economic Studies, 48, 289–309.CrossRefGoogle Scholar
Ghosh, A. R., Kim, J. I., Mendoza, E. G., Ostry, J. D. and Qureshi, M. S. (2011). Fiscal Fatigue, Fiscal Space and Debt Sustainability in Advanced Economies. NBER Working Paper No. 16782.CrossRefGoogle Scholar
Halac, M. and Yared, P. (2014). Fiscal rules and discretion under persistent shocks. Econometrica, 82(5), 1557–614.Google Scholar
Halac, M. and Yared, P. (2015). Fiscal Rules and Discretion in a World Economy. Manuscript, Columbia University.Google Scholar
Hatchondo, J. C. and Martinez, L. (2009). Long-duration bonds and sovereign defaults. Journal of International Economics, 79, 117–25.CrossRefGoogle Scholar
Hatchondo, J. C. and Martinez, L. (2012). On the benefits of GDP-indexed government debt: lessons from a model of sovereign defaults. Economic Quarterly, 98(2), 139–57.Google Scholar
Hatchondo, J. C. and Martinez, L. (2013). Sudden stops, time inconsistency, and the duration of sovereign debt. International Economic Journal, 27(1), 217–28.Google Scholar
Hatchondo, J. C., Martinez, L. and Önder, Y. K. (2017). Non-Defaultable Debt and Sovereign Risk. Journal of International Economics, forthcoming. http://dx.doi.org/10.1016/j.jinteco.2017.01.008CrossRefGoogle Scholar
Hatchondo, J. C., Martinez, L. and Roch, F. (2015). Fiscal Rules and the Sovereign Default Premium. CAEPR Working Paper No. #2015-010.CrossRefGoogle Scholar
Hatchondo, J. C., Martinez, L. and Sapriza, H. (2007). Quantitative models of sovereign default and the threat of financial exclusion. Economic Quarterly, 93(3), 251–86.Google Scholar
Hatchondo, J. C., Martinez, L. and Sapriza, H. (2009). Heterogeneous borrowers in quantitative models of sovereign default. International Economic Review, 50, 1129–51.Google Scholar
Hatchondo, J. C., Martinez, L. and Sapriza, H. (2010). Quantitative properties of sovereign default models: solution methods matter. Review of Economic Dynamics, 13(4), 919–33.Google Scholar
Hatchondo, J. C., Martinez, L. and Sosa Padilla, C. (2014). Voluntary sovereign debt exchanges. Journal of Monetary Economics, 61, 32–50.Google Scholar
Hatchondo, J. C., Martinez, L. and Sosa Padilla, C. (2016). Debt dilution and sovereign default risk. Journal of Political Economy, 124(5), 1383–422.Google Scholar
IMF (2013a). Fiscal Monitor: Fiscal Adjustment in an Uncertain World. International Monetary Fund, April.Google Scholar
IMF (2013b). Staff Guidance Note for Public Debt Sustainability Analysis in Market-Access Countries. Washington: International Monetary Fund.Google Scholar
IMF (2013c). Staff Guidance Note on the Application of the Joint Bank-Fund Debt Sustainability Framework for Low-Income Countries. Washington: International Monetary Fund.Google Scholar
IMF (2014). Reform of the Policy on Public Debt Limits in Fund-Supported Programs. International Monetary Fund.Google Scholar
Juvenal, L. and Wiseman, K. (2015). Portugal’s Regained Market Access: Opportunities and Risks. International Monetary Fund, Portugal Selected Issues Papers.Google Scholar
Lizarazo, S. (2012). Contagion of Financial Crises in Sovereign Debt Markets. MPRA Paper No. 40623, https://mpra.ub.uni-muenchen.de/40623/2/MPRA_paper_40623.pdfGoogle Scholar
Lizarazo, S. (2013). Sovereign risk and risk averse international investors. Journal of International Economics, 82(2), 317–30.Google Scholar
Mendoza, E. and Yue, V. (2012). A general equilibrium model of sovereign default and business cycles. The Quarterly Journal of Economics, 127(2), 889–946.Google Scholar
Neumeyer, P. and Perri, F. (2005). Business cycles in emerging economies: the role of interest rates. Journal of Monetary Economics, 52, 345–80.Google Scholar
Reinhart, C., Rogoff, K. S. and Savastano, M. A. (2003). Debt intolerance. Brookings Papers on Economic Activity, 34(1), 1–74.CrossRefGoogle Scholar
Reinhart, C. M., Reinhart, V. and Rogoff, K. S. (2015). Dealing with debt. Journal of International Economics, 96, Supplement 1 (July): S43–S55.Google Scholar
Roch, F. and Uhlig, H. (2014). The Dynamics of Sovereign Debt Crises and Bailouts. Mimeo, University of Chicago.Google Scholar
Tanner, E. and Samaké, I. (2006). Probabilistic Sustainability of Public Debt: A Vector Autoregression Approach for Brazil, Mexico, and Turkey. IMF Working Paper No. 06/295.Google Scholar
Uribe, M. and Yue, V. (2006). Country spreads and emerging countries: who drives whom? Journal of International Economics, 69, 6–36.Google Scholar
Yue, V. (2010). Sovereign default and debt renegotiation. Journal of International Economics, 80(2), 176–87.Google Scholar