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Sovereign debt disputes: A database on government coerciveness during debt crises

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  • Enderlein, Henrik
  • Trebesch, Christoph
  • von Daniels, Laura

Abstract

This paper measures “debt disputes” between governments and foreign private creditors in periods of sovereign debt crises. We construct an index of government coerciveness, consisting of 9 objective sub-indicators. Each of these sub-indicators captures unilateral government actions imposed on foreign banks and bondholders. The results provide the first systematic account of debt crises that goes beyond a binary categorization of default versus non-default. Overall, government behavior and rhetoric show a strong variability, ranging from highly confrontational to very smooth crisis resolution processes. In a preliminary analysis on the determinants of coercive behavior, we find political institutions to be significant, while economic and financial factors play a lesser role. These results open up an agenda for future research.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Money and Finance.

Volume (Year): 31 (2012)
Issue (Month): 2 ()
Pages: 250-266

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Handle: RePEc:eee:jimfin:v:31:y:2012:i:2:p:250-266

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Web page: http://www.elsevier.com/locate/inca/30443

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Keywords: Sovereign default; Debt restructuring; Crisis resolution;

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References

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Cited by:
  1. Jeromin Zettelmeyer & Christoph Trebesch & Mitu Gulati, 2013. "The Greek debt restructuring: an autopsy," Economic Policy, CEPR & CES & MSH, vol. 28(75), pages 513-563, 07.
  2. Hatchondo, Juan Carlos & Martinez, Leonardo & Sosa Padilla, César, 2014. "Voluntary sovereign debt exchanges," Journal of Monetary Economics, Elsevier, vol. 61(C), pages 32-50.

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