On the role of financial aid in a default episode

On the role of financial aid in a default episode

Abstract Our aim is to explore the role of financial aid in a default episode. To that end, we develop a dynamic stochastic quantitative model of sovereign default featuring fiscal policy, endogenous financial aid and risk-averse foreign lenders. After calibrating the model, we feed output shocks in...

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Bibliographic Details
Main Authors: Gabriel Cuadra, Manuel Ramos-Francia, Santiago Garcia-Verdu
Format: Article
Language:English
Published: Centro de Investigación y Docencia Económicas 2018-10-01
Series:Latin American Economic Review
Subjects:
Sovereign default
Fiscal policy
Financial aid
Online Access:http://link.springer.com/article/10.1186/s40503-018-0060-2

Internet

http://link.springer.com/article/10.1186/s40503-018-0060-2

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