Sovereign Debt As a Contingent Claim: A Quantitative Approach

摘要: Abstract We construct a dynamic equilibrium model with contingent service and adverse selection to quantitatively study sovereign debt. In the model, benefits of defaulting are tempered by higher future interest rates. For wide set parameters, only is one in which defaults all states; additional output losses, however, sustain equilibria that resemble data. show due problem, some countries choose delay default reduce loss reputation. Moreover, although no imply greater welfare levels, they not sustainable highly indebted volatile countries.