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Code and data files for "Fiscal Policy and Default Risk in Emerging Markets"
TLDR
In this article, all Matlab and C++ programs necessary to produce the results of the article were described and a spreadsheet with Mexican data was also provided, along with a spreadsheet containing Mexican data.Abstract:
All Matlab and C++ programs necessary to produce the results of the article. There is also a Excel spreadsheet with Mexican data.read more
Citations
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Sovereign Default and Debt Renegotiation through IFIs
TL;DR: In this paper, the authors extended the small open economy model of sovereign debt and default of Eaton and Gersovitz (1981) to study the decisions of a country before a default.
Journal ArticleDOI
The impact of bailouts on political turnover and sovereign default risk
Timm Marc Prein,Almuth Scholl +1 more
TL;DR: In this article, the authors developed a stochastic dynamic politico-economic model of sovereign debt to analyze the impact of bailouts on political turnover and sovereign default risk in a small open economy.
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Death of a Theory
TL;DR: In this article, the authors discuss the effectiveness of fiscal approaches to stabilization policy and argue that actual political systems are ill-suited to implement the advice from the theory, and monetary stabilization policy has been quite effective, making fiscal experiments redundant.
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Redistributive Fiscal Policies and Business Cycles in Emerging Economies
Amanda M. Michaud,Jacek Rothert +1 more
TL;DR: The authors show that government expenditures are procyclical in emerging markets and counter-cyclical on goods and services in developed economies, driven by differences in social transfers, and analyze how differences in tax policy and the nature of underlying inequality amplify or mitigate this result.
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Political Constraints and Sovereign Default Premia
TL;DR: In this article, the authors study the relationship between political constraints and the probability of sovereign default on external debt using a dynamic stochastic model of fiscal policy augmented with legislative bargaining and default.
References
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Journal ArticleDOI
On the Determination of the Public Debt
TL;DR: In this paper, a public debt theory is constructed in which the Ricardian invariance theorem is valid as a first-order proposition but where the dependence excess burden on the timing of taxation implies an optimal time path of debt issue.
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Debt with Potential Repudiation: Theoretical and Empirical Analysis
Jonathan Eaton,Mark Gersovitz +1 more
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The Voracity Effect
Aaron Tornell,Philip R. Lane +1 more
TL;DR: In this paper, the authors analyze an economy that lacks a strong legal-political institutional infrastructure and is populated by multiple powerful groups, and they show that a dilution in the concentration of power leads to faster growth and a less procyclical response to shocks.
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The risk-free rate in heterogeneous-agent incomplete-insurance economies
TL;DR: In this paper, the authors construct an economy where agents experience uninsurable idiosyncratic endowment shocks and smooth consumption by holding a risk-free asset, and calibrate the economy and characterize equilibria computationally.
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Business Cycles in Emerging Economies:The Role of Interest Rates
TL;DR: In this paper, the empirical relation between the interest rates that emerging economies face in international capital markets and their business cycles was investigated, showing that interest rate shocks alone can explain 50% of output fluctuations and can generate business cycle patterns consistent with the regularities described above and with the major booms and recessions in Argentina in the last two decades.