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IMF bailouts and moral hazard Author info | Abstract | Publisher info | Download info | Related research | Statistics Lee, Jong-Wha
Shin, Kwanho
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This paper empirically investigates the extent of investor moral hazard associated with IMF bailouts by analyzing the responses of sovereign bond spreads to the changes in the perceived probability of IMF bailouts of countries undergoing financial crisis. By allowing the probability of being bailed out by the IMF to differ across countries, we find that the expectations of IMF lending attenuate the relationship between spreads and country fundamentals, consistent with the presence of IMF moral hazard. Our findings indicate that this effect persists even after the non-bailout of Russian crisis in August 1998.
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Article provided by Elsevier in its journal Journal of International Money and Finance .
Volume (Year): 27 (2008)
Issue (Month): 5 (September)
Pages: 816-830
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Handle: RePEc:eee:jimfin:v:27:y:2008:i:5:p:816-830Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30443
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Andrew G Haldane & J"rg Scheibe, .
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Ashley Taylor & Prasanna Gai, 2004.
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Econometric Society 2004 Far Eastern Meetings
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[Downloadable!] (restricted) Steven B. Kamin, 2002.
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Bird, Graham & Hussain, Mumtaz & Joyce, Joseph P., 2004.
"Many happy returns? Recidivism and the IMF ,"
Journal of International Money and Finance ,
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Robert J. Barro & Jong-Wha Lee, 2002.
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Robert J Barro & Jong-Wha Lee, 2003.
"IMF Programs: Who Is Chosen and What Are the Effects? ,"
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Olivier Jeanne & Jeromin Zettelmeyer, 2001.
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Economic Policy ,
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Other versions: Yung Chul Park & Yunjong Wang, 2002.
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Isabel Schnabel & Giovanni Dell'Ariccia & Jeromin Zettelmeyer, 2002.
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IMF Working Papers
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Ashoka Mody & Diego Saravia, 2005.
"Catalyzing Private Capital Flows: Do IMF Programs Work as Commitment Devices? ,"
Documentos de Trabajo
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Barry Eichengreen & Ashoka Mody, 2004.
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Economic Journal ,
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Axel Dreher, 2004.
"Does the IMF cause moral hazard? A critical review of the evidence ,"
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Oscar Bernal & Kim Oosterlinck & Ariane Szafarz, 2009.
"Observing bailout expectations during a total eclipse of the sun ,"
Working Papers DULBEA
09-01.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA).
[Downloadable!]
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Oscar Bernal & Kim Oosterlinck & Ariane Szafarz, 2008.
"Observing bailout expectations during a total eclipse of the sun ,"
Working Papers CEB
08-015.RS, Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, Centre Emile Bernheim (CEB).
[Downloadable!] BERNAL DIAZ, Oscar & OOSTERLINCK, Kim & SZAFARZ, Ariane, 2009.
"Observing bailout expectations during a total eclipse of the sun ,"
ULB Institutional Repository
09-01.RS, ULB -- Universite Libre de Bruxelles.
[Downloadable!] BERNAL DIAZ, Oscar & OOSTERLINCK, Kim & SZAFARZ, Ariane, 2008.
"Observing bailout expectations during a total eclipse of the sun ,"
ULB Institutional Repository
08-015.RS, ULB -- Universite Libre de Bruxelles.
[Downloadable!] Heppke-Falk, Kirsten H. & Wolff, Guntram B., 2007.
"Moral hazard and bail-out in fiscal federations: evidence for the German Länder ,"
Discussion Paper Series 1: Economic Studies
2007,07, Deutsche Bundesbank, Research Centre.
[Downloadable!]
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