Open AccessPosted Content
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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Journal ArticleDOI
Fiscal policy and the output costs of sovereign default
TL;DR: In this article, the authors introduce fiscal policy into a sovereign debt model with endogenous default costs and examine the implications for the determination of the output costs of default, and they find that the quantitative properties of the outputs of default and their dependence on primitives such as the elasticity of labor supply are distinctly different depending on the margin of fiscal adjustment.
Posted Content
Sovereign default and public debt sustainability
Michel Guillard,Hubert Kempf +1 more
TL;DR: In this paper, the authors address sovereign default in a stochastic macroeconomic model with infinite horizon and the presence of a debt recovery rule and prove the existence of a threshold default, which is defined as a market event which can be observed when the fiscal policy is constrained by a tax rate ceiling.
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Unemployment, Sovereign Debt, and Fiscal Policy in a Currency Union
TL;DR: In this article, the authors studied the optimal fiscal policy for a small open economy in a currency union in which the government cannot commit, and the response of the economic activity to government expenditures is highly nonlinear in the stock of external debt and the magnitude of the shocks.
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Debt, Defaults and Dogma: politics and the dynamics of sovereign debt markets
TL;DR: In this article, the authors combine three international datasets containing information on the political leanings of the ruling government, sovereign debt yields, and key macroeconomic quantities, and build a sovereign default model in which elections determine which one of two politically heterogeneous policy makers will be in charge of the government.
Dissertation
Essays in Quantitative Macroeconomics
TL;DR: In this paper, the authors present three essays that deal with macroeconomic topics and are linked by a common method, the computational experiment, which gives answers to quantitative questions on the post-war U.S. macroeconomy.
References
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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.
Journal ArticleDOI
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.
Journal ArticleDOI
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.
Posted Content
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.