A quantitative model of sovereign debt, bailouts and conditionality
| Type of Publication: | Journal article |
| Publication status: | Published |
| Author: | Fink, Fabian; Scholl, Almuth |
| Year of publication: | 2016 |
| Published in: | Journal of International Economics ; 98 (2016). - pp. 176-190. - ISSN 0022-1996. - eISSN 1873-0353 |
| DOI (citable link): | https://dx.doi.org/10.1016/j.jinteco.2015.09.007 |
| Summary: |
In times of sovereign debt crises, International Financial Institutions provide temporary financial support contingent on the implementation of specific macroeconomic policies. This paper develops a model of sovereign debt and default with endogenous participation rates in bailout programs. Conditionality enters as a constraint on fiscal policy. In the model, the insurance character of bailouts generates incentives for debt accumulation. Quantitative results suggest that bailouts prevent sovereign defaults in the short-run but may come at a cost of a greater default probability in the long-run. Increasing the intensity of conditionality lowers the bailout participation rate and generates a hump-shaped pattern of sovereign default risk.
|
| JEL Classification: | E44, E62, F34 |
| Subject (DDC): | 330 Economics |
| Keywords: | Sovereign debt, bailouts, quantitative model |
| Bibliography of Konstanz: | Yes |
Cite This
Files in this item
| Files | Size | Format | View |
|---|---|---|---|
|
There are no files associated with this item. |
|||
FINK, Fabian, Almuth SCHOLL, 2016. A quantitative model of sovereign debt, bailouts and conditionality. In: Journal of International Economics. 98, pp. 176-190. ISSN 0022-1996. eISSN 1873-0353. Available under: doi: 10.1016/j.jinteco.2015.09.007
@article{Fink2016quant-32693, title={A quantitative model of sovereign debt, bailouts and conditionality}, year={2016}, doi={10.1016/j.jinteco.2015.09.007}, volume={98}, issn={0022-1996}, journal={Journal of International Economics}, pages={176--190}, author={Fink, Fabian and Scholl, Almuth} }
<rdf:RDF xmlns:dcterms="http://purl.org/dc/terms/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:rdf="http://www.w3.org/1999/02/22-rdf-syntax-ns#" xmlns:bibo="http://purl.org/ontology/bibo/" xmlns:dspace="http://digital-repositories.org/ontologies/dspace/0.1.0#" xmlns:foaf="http://xmlns.com/foaf/0.1/" xmlns:void="http://rdfs.org/ns/void#" xmlns:xsd="http://www.w3.org/2001/XMLSchema#" > <rdf:Description rdf:about="https://kops.uni-konstanz.de/rdf/resource/123456789/32693"> <dspace:isPartOfCollection rdf:resource="https://kops.uni-konstanz.de/rdf/resource/123456789/46"/> <dcterms:abstract xml:lang="eng">In times of sovereign debt crises, International Financial Institutions provide temporary financial support contingent on the implementation of specific macroeconomic policies. This paper develops a model of sovereign debt and default with endogenous participation rates in bailout programs. Conditionality enters as a constraint on fiscal policy. In the model, the insurance character of bailouts generates incentives for debt accumulation. Quantitative results suggest that bailouts prevent sovereign defaults in the short-run but may come at a cost of a greater default probability in the long-run. Increasing the intensity of conditionality lowers the bailout participation rate and generates a hump-shaped pattern of sovereign default risk.</dcterms:abstract> <dc:date rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2016-01-25T13:32:52Z</dc:date> <dcterms:available rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2016-01-25T13:32:52Z</dcterms:available> <dc:language>eng</dc:language> <dc:contributor>Fink, Fabian</dc:contributor> <dcterms:title>A quantitative model of sovereign debt, bailouts and conditionality</dcterms:title> <dc:creator>Scholl, Almuth</dc:creator> <bibo:uri rdf:resource="https://kops.uni-konstanz.de/handle/123456789/32693"/> <dcterms:issued>2016</dcterms:issued> <foaf:homepage rdf:resource="http://localhost:8080/jspui"/> <dc:creator>Fink, Fabian</dc:creator> <dc:contributor>Scholl, Almuth</dc:contributor> <dcterms:isPartOf rdf:resource="https://kops.uni-konstanz.de/rdf/resource/123456789/46"/> <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/> </rdf:Description> </rdf:RDF>
This item appears in the following Collection(s)
Search KOPS
Browse
My Account
