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Ignacio Presno
Researcher at Federal Reserve System
Publications - 13
Citations - 142
Ignacio Presno is an academic researcher from Federal Reserve System. The author has contributed to research in topics: Sovereign default & Bond. The author has an hindex of 7, co-authored 13 publications receiving 127 citations.
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Optimal Taxation with Endogenous Default under Incomplete Markets
Demian Pouzo,Ignacio Presno +1 more
TL;DR: In this article, the authors characterize the fiscal policy of the government when it levies distortionary taxes and issues defaultable bonds to finance its stochastic expenditure, and show that the optimal fiscal and renegotiation policies have implications aligned with the data.
ReportDOI
Fiscal Stimulus under Sovereign Risk
TL;DR: This paper showed that the excess procyclicality of fiscal policy is more pervasive in countries with higher sovereign risk and provided a model of optimal fiscal policy with nominal rigidities and endogenous sovereign default that can account for this empirical pattern.
Journal ArticleDOI
Sovereign Default Risk and Uncertainty Premia
Demian Pouzo,Ignacio Presno +1 more
TL;DR: In this paper, the authors developed a general equilibrium model of sovereign debt with endogenous default and extended the methodology of McFadden (1981) to compute equilibrium allocations and prices using the discrete state space (DSS) technique in the context of risk and uncertainty aversion.
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Fiscal Policy, Sovereign Risk, and Unemployment
TL;DR: In this article, the authors analyze the optimal fiscal policy and study quantitatively whether austerity or stimulus is optimal during an economic slump, concluding that an increase in government spending during a recession stimulates economic activity and reduces unemployment.
Posted Content
Sovereign Default Risk and Uncertainty Premia
Demian Pouzo,Ignacio Presno +1 more
TL;DR: In this paper, the authors develop a general equilibrium model of sovereign debt with endogenous default wherein investors fear that the probability model of the underlying state of the borrowing economy is misspecified.