Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Research Department, issuing body.
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| ISBN: | 9781475521818
1475521812
1513596640
9781513596648
9781513596648
1475561954
9781475561951
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| ISSN: | 1018-5941
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| Digital file characteristics: | data file
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| Notes: | "March 2016."
"Research Department."
"WP/16/65" on page [one] refers to: Natural disasters and food crises in low-income countries.
Includes bibliographical references (pages 41-44).
Online resource; title from pdf title page (IMF.org Web site, viewed March 21, 2016).
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| Summary: | Emerging countries that have defaulted on their debt repayment obligations in the past are more likely to default again in the future than are non-defaulters even with the same external debt-to-GDP ratio. These countries actually have repeated defaults or restructurings in short periods. This paper explains these stylized facts within a dynamic stochastic general equilibrium framework by explicitly modeling renegotiations between a defaulting country and its creditors. The quantitative analysis of the model reveals that the equilibrium probability of default for a given debt-to-GDP level is weakly increasing with the number of past defaults. The model also accords with an additional fact: lower recovery rates (high NPV haircuts) are associated with increases in spreads at renegotiation.--Abstract.
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| Other form: | Print Version: Asonuma, Tamon. Serial Sovereign Defaults and Debt Restructurings. Washington, D.C. : International Monetary Fund, 2016 9781513596648
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| Standard no.: | 10.5089/9781513596648.001
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