The productivity cost of sovereign default: evidence from the European debt crisis
Author
Abstract
Suggested Citation
DOI: 10.1007/s00199-015-0939-y
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Hans Hvide & Tore Leite, 2010.
"Optimal debt contracts under costly enforcement,"
Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 44(1), pages 149-165, July.
- Hvide, Hans K. & Leite, Tore, 2007. "Optimal Debt Contracts under Costly Enforcement," CEPR Discussion Papers 6040, C.E.P.R. Discussion Papers.
- Xavier Mateos-Planas & Giulio Seccia, 2014. "Consumer default with complete markets: default-based pricing and finite punishment," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(3), pages 549-583, August.
- Stefan Krasa & Tridib Sharma & Anne Villamil, 2008. "Bankruptcy and firm finance," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(2), pages 239-266, August.
- Aguiar, Mark & Amador, Manuel, 2014. "Sovereign Debt," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 647-687, Elsevier.
- Harold L. Cole & Lee E. Ohanian & Ron Leung, 2005.
"Deflation and the International Great Depression: A Productivity Puzzle,"
NBER Working Papers
11237, National Bureau of Economic Research, Inc.
- Harold L. Cole & Ron Leung & Lee E. Ohanian, 2005. "Deflation and the international Great Depression: a productivity puzzle," Staff Report 356, Federal Reserve Bank of Minneapolis.
- Uribe, MartÃn & Schmitt-Grohé, Stephanie & Yue, Vivian & Na, Seunghoon, 2015.
"A Model of the Twin Ds: Optimal Default and Devaluation,"
CEPR Discussion Papers
10697, C.E.P.R. Discussion Papers.
- Seunghoon Na & Stephanie Schmitt-Grohe & Martin Uribe & Vivian Z. Yue, 2015. "A model of the Twin Ds: optimal default and devaluation," FRB Atlanta CQER Working Paper 2015-1, Federal Reserve Bank of Atlanta.
- Vivian Yue & Stephanie Schmitt-Grohe & Martin Uribe & Seunghoon Na, 2015. "A Model of the Twin Ds: Optimal Default and Devaluation," 2015 Meeting Papers 419, Society for Economic Dynamics.
- Juan Carlos Conesa & Timothy J. Kehoe, 2017.
"Gambling for redemption and self-fulfilling debt crises,"
Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(4), pages 707-740, December.
- Timothy Kehoe & Juan Carlos Conesa, 2012. "Gambling for Redemption and Self-Fulfilling Debt Crises," 2012 Meeting Papers 614, Society for Economic Dynamics.
- Juan Carlos Conesa & Timothy J. Kehoe, 2015. "Gambling for Redemption and Self-Fulfilling Debt Crises," NBER Working Papers 21026, National Bureau of Economic Research, Inc.
- Juan Carlos Conesa & Timothy J. Kehoe, 2012. "Gambling for redemption and self-fulfilling debt crises," Staff Report 465, Federal Reserve Bank of Minneapolis.
- Cristina Arellano & Ananth Ramanarayanan, 2012.
"Default and the Maturity Structure in Sovereign Bonds,"
Journal of Political Economy, University of Chicago Press, vol. 120(2), pages 187-232.
- Cristina Arellano & Ananth Ramanarayanan, 2008. "Default and the maturity structure in sovereign bonds," Staff Report 410, Federal Reserve Bank of Minneapolis.
- Cristina Arellano & Ananth Ramanarayanan, 2008. "Default and the maturity structure in sovereign bonds," Globalization Institute Working Papers 19, Federal Reserve Bank of Dallas.
- Ananth Ramanarayanan & Cristina Arellano, 2008. "Default and the Maturity Structure in Sovereign Bonds," 2008 Meeting Papers 479, Society for Economic Dynamics.
- Aloisio Araujo, 2015. "General equilibrium, preferences and financial institutions after the crisis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 58(2), pages 217-254, February.
- Enrique G. Mendoza & Vivian Z. Yue, 2012.
"A General Equilibrium Model of Sovereign Default and Business Cycles,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(2), pages 889-946.
- Miss Zhanwei Z. Yue & Mr. Enrique G. Mendoza, 2011. "A General Equilibrium Model of Sovereign Default and Business Cycles," IMF Working Papers 2011/166, International Monetary Fund.
- Enrique G. Mendoza & Vivian Z. Yue, 2011. "A General Equilibrium Model of Sovereign Default and Business Cycles," NBER Working Papers 17151, National Bureau of Economic Research, Inc.
- Harold L. Cole & Timothy J. Kehoe, 2000.
"Self-Fulfilling Debt Crises,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(1), pages 91-116.
- Harold L. Cole & Timothy J. Kehoe, 1998. "Self-fulfilling debt crises," Staff Report 211, Federal Reserve Bank of Minneapolis.
- Harold L. Cole & Timothy J. Kehoe, 1998. "Self-Fulfilling Debt Crises," Levine's Working Paper Archive 114, David K. Levine.
- Wenxin Du & Jesse Schreger, 2013.
"Local Currency Sovereign Risk,"
International Finance Discussion Papers
1094, Board of Governors of the Federal Reserve System (U.S.).
- Wenxin Du & Jesse Schreger, 2014. "Local Currency Sovereign Risk," Working Paper 102321, Harvard University OpenScholar.
- Mark Aguiar & Manuel Amador & Emmanuel Farhi & Gita Gopinath, 2013.
"Crisis and Commitment: Inflation Credibility and the Vulnerability to Sovereign Debt Crises,"
Working Papers
2013-4, Princeton University. Economics Department..
- Mark Aguiar & Manuel Amador & Emmanuel Farhi & Gita Gopinath, 2013. "Crisis and Commitment: Inflation Credibility and the Vulnerability to Sovereign Debt Crises," NBER Working Papers 19516, National Bureau of Economic Research, Inc.
- Cristina Arellano & Juan Carlos Conesa & Timothy J. Kehoe, 2012. "Chronic sovereign debt crises in the Eurozone, 2010-2012," Economic Policy Paper 12-4, Federal Reserve Bank of Minneapolis.
- Harold L. Cole & Timothy J. Kehoe, 1996. "A self-fulfilling model of Mexico's 1994-95 debt crisis," Staff Report 210, Federal Reserve Bank of Minneapolis.
- Sergei A. Davydenko & Ilya A. Strebulaev & Xiaofei Zhao, 2012. "A Market-Based Study of the Cost of Default," The Review of Financial Studies, Society for Financial Studies, vol. 25(10), pages 2959-2999.
- Jean-Pierre Danthine & Xiangrong Jin, 2007.
"Intangible capital, corporate valuation and asset pricing,"
Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 32(1), pages 157-177, July.
- Jean-Pierre DANTHINE & Xiangrong JIN, 2006. "Intangible Capital, Corporate Valuation and Asset Pricing," Cahiers de Recherches Economiques du Département d'économie 06.05, Université de Lausanne, Faculté des HEC, Département d’économie.
- Jean-Pierre Danthine & Xiangrong JIN, 2006. "Intangible Capital, Corporate Valuation and Asset Pricing," Swiss Finance Institute Research Paper Series 06-18, Swiss Finance Institute.
- Danthine, Jean-Pierre & Jin, Xiangrong, 2006. "Intangible Capital, Corporate Valuation and Asset Pricing," CEPR Discussion Papers 5897, C.E.P.R. Discussion Papers.
- Juan Carlos Conesa & Timothy J. Kehoe, 2014.
"Is It Too Late to Bail Out the Troubled Countries in the Eurozone?,"
American Economic Review, American Economic Association, vol. 104(5), pages 88-93, May.
- Juan Carlos Conesa & Timothy J. Kehoe, 2014. "Is It Too Late to Bail Out the Troubled Countries in the Eurozone?," NBER Working Papers 19909, National Bureau of Economic Research, Inc.
- Juan Carlos Conesa & Timothy J. Kehoe, 2014. "Is It Too Late to Bail Out the Troubled Countries in the Eurozone?," Staff Report 497, Federal Reserve Bank of Minneapolis.
- Cara McDaniel, 2011. "Forces Shaping Hours Worked in the OECD, 1960-2004," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(4), pages 27-52, October.
- Cole, Harold L. & Kehoe, Timothy J., 1996. "A self-fulfilling model of Mexico's 1994-1995 debt crisis," Journal of International Economics, Elsevier, vol. 41(3-4), pages 309-330, November.
- M. Peiris & Alexandros Vardoulakis, 2013. "Savings and default," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(1), pages 153-180, September.
- Alexandre Cunha, 2013. "On the relevance of floating exchange rate policies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 53(2), pages 357-382, June.
- José-María Da-Rocha & Eduardo-Luis Giménez & Francisco-Xavier Lores, 2013. "Self-fulfilling crises with default and devaluation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 53(3), pages 499-535, August.
- Galo Nuño & Carlos Thomas, 2015.
"Monetary policy and sovereign debt vulnerability,"
Working Papers
1517, Banco de España.
- Carlos Thomas & Galo Nuño, 2016. "Monetary Policy and Sovereign Debt Vulnerability," 2016 Meeting Papers 329, Society for Economic Dynamics.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Gabriel Cuadra & Manuel Ramos-Francia & Santiago Garcia-Verdu, 2018.
"On the role of financial aid in a default episode,"
Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 27(1), pages 1-19, December.
- Cuadra Gabriel & Ramos Francia Manuel & García-Verdú Santiago, 2018. "On the Role of Financial Aid in a Default Episode," Working Papers 2018-15, Banco de México.
- Cristina Arellano & Timothy J. Kehoe & Herakles Polemarchakis, 2017. "Introduction to the Special Issue on Models of Debt and Debt Crises," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(4), pages 605-610, December.
- Sergey Pekarski & Anna Sokolova, 2021. "Default Costs and Self-fulfilling Fiscal Limits in a Small Open Economy," HSE Working papers WP BRP 243/EC/2021, National Research University Higher School of Economics.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Corsetti, G. & Erce, A. & Uy, T., 2018.
"Debt Sustainability and the Terms of Official Support,"
Cambridge Working Papers in Economics
1864, Faculty of Economics, University of Cambridge.
- Corsetti, Giancarlo & Erce, Aitor & Uy, Timothy, 2018. "Debt Sustainability and the Terms of Official Support," CEPR Discussion Papers 13292, C.E.P.R. Discussion Papers.
- Roch, Francisco & Uhlig, Harald, 2018.
"The dynamics of sovereign debt crises and bailouts,"
Journal of International Economics, Elsevier, vol. 114(C), pages 1-13.
- Mr. Francisco Roch & Harald Uhlig, 2016. "The Dynamics of Sovereign Debt Crises and Bailouts," IMF Working Papers 2016/136, International Monetary Fund.
- Uhlig, Harald & Roch, Francisco, 2018. "The Dynamics of Sovereign Debt Crises and Bailouts," CEPR Discussion Papers 12921, C.E.P.R. Discussion Papers.
- Stangebye, Zachary R., 2020. "Beliefs and long-maturity sovereign debt," Journal of International Economics, Elsevier, vol. 127(C).
- Aguiar, M. & Chatterjee, S. & Cole, H. & Stangebye, Z., 2016.
"Quantitative Models of Sovereign Debt Crises,"
Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1697-1755,
Elsevier.
- Mark Aguiar & Satyajit Chatterjee & Harold Cole & Zachary Stangebye, 2016. "Quantitative Models of Sovereign Debt Crises," NBER Working Papers 22125, National Bureau of Economic Research, Inc.
- Juan Carlos Conesa & Timothy J. Kehoe, 2017.
"Gambling for redemption and self-fulfilling debt crises,"
Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(4), pages 707-740, December.
- Timothy Kehoe & Juan Carlos Conesa, 2012. "Gambling for Redemption and Self-Fulfilling Debt Crises," 2012 Meeting Papers 614, Society for Economic Dynamics.
- Juan Carlos Conesa & Timothy J. Kehoe, 2015. "Gambling for Redemption and Self-Fulfilling Debt Crises," NBER Working Papers 21026, National Bureau of Economic Research, Inc.
- Juan Carlos Conesa & Timothy J. Kehoe, 2012. "Gambling for redemption and self-fulfilling debt crises," Staff Report 465, Federal Reserve Bank of Minneapolis.
- Javier Bianchi & Jorge Mondragon, 2022.
"Monetary Independence and Rollover Crises,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(1), pages 435-491.
- Javier Bianchi & Jorge Mondragon, 2018. "Monetary Independence and Rollover Crises," NBER Working Papers 25340, National Bureau of Economic Research, Inc.
- Javier Bianchi, 2019. "Monetary Independence and Rollover Crises," 2019 Meeting Papers 1367, Society for Economic Dynamics.
- Javier Bianchi & Jorge Mondragon, 2018. "Monetary Independence and Rollover Crises," Working Papers 755, Federal Reserve Bank of Minneapolis.
- Alonso-Ortiz, Jorge & Colla, Esteban & Da-Rocha, Jose-Maria, 2014. "Bounding the productivity default shock : Evidence from the The European Sovereign Debt Crisis," MPRA Paper 59617, University Library of Munich, Germany.
- Ricardo Sabbadini, 2017.
"Overcoming the Original Sin: Gains from Local Currency External Debt,"
Working Papers, Department of Economics
2017_27, University of São Paulo (FEA-USP).
- Ricardo Sabbadini, 2018. "Overcoming the Original Sin: gains from local currency external debt," Working Papers Series 484, Central Bank of Brazil, Research Department.
- Galo Nuño & Carlos Thomas, 2015.
"Monetary policy and sovereign debt vulnerability,"
Working Papers
1517, Banco de España.
- Carlos Thomas & Galo Nuño, 2016. "Monetary Policy and Sovereign Debt Vulnerability," 2016 Meeting Papers 329, Society for Economic Dynamics.
- Gonzalo Fernandez-de-Cordoba & Pau Pujolas & Jose Torres, 2017.
"Fiscal Discipline and Defaults,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 1-13, March.
- Gonzalo F. de-Córdoba & Pau S. Pujolas & José L. Torres, 2016. "Fiscal Discipline and Defaults," Working Papers 2016-05, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
- Gonzalo Fernandez-de-Cordoba & Pau Pujolas & Jose Torres, 2016. "Code and data files for "Fiscal Discipline and Defaults"," Computer Codes 13-49, Review of Economic Dynamics.
- Giancarlo Corsetti, 2023. "Debt crises, fast and slow Giancarlo," RSCAS Working Papers 2023/15, European University Institute.
- Stefan Niemann & Paul Pichler, 2020.
"Optimal fiscal policy and sovereign debt crises,"
Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 37, pages 234-254, July.
- Stefan Niemann & Paul Pichler, 2017. "Optimal fiscal policy and sovereign debt crises," Working Papers 218, Oesterreichische Nationalbank (Austrian Central Bank).
- Cui, Wei & Kaas, Leo, 2021.
"Default cycles,"
Journal of Monetary Economics, Elsevier, vol. 117(C), pages 377-394.
- Leo Kaas & Wei Cui, 2017. "Default Cycles," 2017 Meeting Papers 1288, Society for Economic Dynamics.
- Cui, Wei & Kaas, Leo, 2017. "Default cycles," LSE Research Online Documents on Economics 86159, London School of Economics and Political Science, LSE Library.
- Wei Cui & Leo Kaas, 2017. "Default Cycles," Discussion Papers 1716, Centre for Macroeconomics (CFM).
- Conesa, Juan Carlos & Kehoe, Timothy J., 2024.
"Preemptive austerity with rollover risk,"
Journal of International Economics, Elsevier, vol. 150(C).
- Juan Carlos Conesa & Timothy J. Kehoe, 2023. "Preemptive Austerity with Rollover Risk," NBER Working Papers 31828, National Bureau of Economic Research, Inc.
- Juan Carlos Conesa & Timothy J. Kehoe, 2023. "Preemptive Austerity with Rollover Risk," Staff Report 654, Federal Reserve Bank of Minneapolis.
- Trebesch, Christoph & Zabel, Michael, 2017.
"The output costs of hard and soft sovereign default,"
European Economic Review, Elsevier, vol. 92(C), pages 416-432.
- Christoph Trebesch & Michael Zabel, 2016. "The Output Costs of Hard and Soft Sovereign Default," CESifo Working Paper Series 6143, CESifo.
- Trebesch, Christoph & Zabel, Michael, 2017. "The output costs of hard and soft sovereign default," Munich Reprints in Economics 55046, University of Munich, Department of Economics.
- Trebesch, Christoph & Zabel, Michael, 2016. "The Output Costs of Hard and Soft Sovereign Default," CEPR Discussion Papers 11582, C.E.P.R. Discussion Papers.
- Stangebye, Zachary, 2015. "Dynamic Panics: Theory and Application to the Eurozone," MPRA Paper 69967, University Library of Munich, Germany.
- Nöh, Lukas, 2019. "Increasing public debt and the role of central bank independence for debt maturities," European Economic Review, Elsevier, vol. 119(C), pages 179-198.
- Broner, Fernando & Erce, Aitor & Martin, Alberto & Ventura, Jaume, 2014.
"Sovereign debt markets in turbulent times: Creditor discrimination and crowding-out effects,"
Journal of Monetary Economics, Elsevier, vol. 61(C), pages 114-142.
- Fernando Broner & Aitor Erce & Alberto Martin & Jaume Ventura, 2013. "Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-Out Effects," NBER Working Papers 19676, National Bureau of Economic Research, Inc.
- Fernando Broner & Alberto Martin & Jaume Ventura & Aitor Erce, 2014. "Sovereign debt markets in turbulent times: creditor discrimination and crowding-out effects," Working Papers 1402, Banco de España.
- Ventura, Jaume & Broner, Fernando & MartÃn, Alberto & Erce, Aitor, 2013. "Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-Out Effects," CEPR Discussion Papers 9761, C.E.P.R. Discussion Papers.
- Aitor Erce & Jaume Ventura & Alberto Martin & Fernando Broner, 2015. "Sovereign Debt Markets in Turbulent Times: Creditor Discrimination and Crowding-Out Effects," Working Papers 701, Barcelona School of Economics.
- Fernando Broner & Aitor Erce & Alberto Martin & Jaume Ventura, 2013. "Sovereign debt markets in turbulent times: Creditor discrimination and crowding-out effects," Economics Working Papers 1372, Department of Economics and Business, Universitat Pompeu Fabra, revised Nov 2013.
- Gonzalo F. de-Córdoba & José L. Torres, 2016. "Public debt frontiers: The Greek case," Working Papers 2016-03, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
- Andreas Müller & Kjetil Storesletten & Fabrizio Zilibotti, 2019.
"Sovereign Debt and Structural Reforms,"
American Economic Review, American Economic Association, vol. 109(12), pages 4220-4259, December.
- Zilibotti, Fabrizio & Storesletten, Kjetil & Müller, Andreas, 2015. "Sovereign Debt and Structural Reforms," CEPR Discussion Papers 10588, C.E.P.R. Discussion Papers.
More about this item
Keywords
Default; Sovereign debt; Financial markets; Productivity;All these keywords.
JEL classification:
- E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:64:y:2017:i:4:d:10.1007_s00199-015-0939-y. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.