I develop a model of secondary market pricing of sovereign debt when the creditors can reduce the debt. The sovereign obtains a stochastic revenue flow from the external sector and have a constant debt flow obligation. Default is costly for both the sovereign and the creditors and the possibility to reduce debt creates a surplus. The creditors can capture this surplus only if they can continuously adjust the debt flow.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1996|
|Date of revision:|
|Contact details of provider:|| Postal: CV4 7AL COVENTRY|
Phone: +44 (0) 2476 523202
Fax: +44 (0) 2476 523032
Web page: http://www2.warwick.ac.uk/fac/soc/economics/
More information through EDIRC
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.:
- Bulow, Jeremy & Rogoff, Kenneth S., 1989.
"A Constant Recontracting Model of Sovereign Debt,"
12491028, Harvard University Department of Economics.
- Jeremy A.Rogoff Bulow & Kenneth, 1986. "A Constant Recontracting Model of Sovereign Debt," University of Chicago - George G. Stigler Center for Study of Economy and State 43, Chicago - Center for Study of Economy and State.
- Jeremy I. Bulow & Kenneth Rogoff, 1986. "A Constant Recontracting Model of Sovereign Debt," NBER Working Papers 2088, National Bureau of Economic Research, Inc.
- Dooley, Michael & Fernandez-Arias, Eduardo & Kletzer, Kenneth & DEC, 1994.
"Is the debt crisis history? Recent private capital inflows to developing countries,"
Policy Research Working Paper Series
1327, The World Bank.
- Dooley, Michael & Fernandez-Arias, Eduardo & Kletzer, Kenneth, 1996. "Is the Debt Crisis History? Recent Private Capital Inflows to Developing Countries," World Bank Economic Review, World Bank Group, vol. 10(1), pages 27-50, January.
- Claessens, Stijn & Diwan, Ishac, 1994. "Recent experience with commercial bank debt reduction: Has the "menu" outdone the market?," World Development, Elsevier, vol. 22(2), pages 201-213, February.
- Claessens, Stijn, 1990. "The debt laffer curve: Some estimates," World Development, Elsevier, vol. 18(12), pages 1671-1677, December.
- Elhanan Helpman, 1989.
"Voluntary Debt Reduction: Incentives and Welfare,"
IMF Staff Papers,
Palgrave Macmillan, vol. 36(3), pages 580-611, September.
- Kenneth A. Froot, 1988.
"Buybacks, Exit Bonds, and the Optimality of Debt and Liquidity Relief,"
NBER Working Papers
2675, National Bureau of Economic Research, Inc.
- Froot, Kenneth A, 1989. "Buybacks, Exit Bonds, and the Optimality of Debt and Liquidity Relief," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(1), pages 49-70, February.
- Cohen, Daniel, 1991.
"A valuation formula for LDC debt,"
Policy Research Working Paper Series
763, The World Bank.
- Leonardo Bartolini & Avinash K Dixit, 1990.
"Market Valuation of Illiquid Debt and Implications for Conflicts Among Creditors,"
IMF Working Papers
90/88, International Monetary Fund.
- Leonardo Bartolini & Avinash Dixit, 1991. "Market Valuation of Illiquid Debt and Implications for Conflicts among Creditors," IMF Staff Papers, Palgrave Macmillan, vol. 38(4), pages 828-849, December.
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
252, David K. Levine.
- Claessens, Stijn & van Wijnbergen, Sweder, 1993. "The 1990 Mexico and Venezuela recapture clauses: An application of average price options," Journal of Banking & Finance, Elsevier, vol. 17(4), pages 733-745, June.
- Claessens, Stijn & Pennacchi, George, 1996. "Estimating the Likelihood of Mexican Default from the Market Prices of Brady Bonds," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 31(01), pages 109-126, March.
- Avinash Dixit, 1992. "Investment and Hysteresis," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 107-132, Winter.
- Diwan, Ishac & Spiegel, Mark M., 1994.
"Are buybacks back? Menu-driven debt reduction schemes with heterogeneous creditors,"
Journal of Monetary Economics,
Elsevier, vol. 34(2), pages 279-293, October.
- Diwan, Ishac & Spiegel, Mark M., 1991. "Are buybacks back? Menu-driven debt-reduction schemes with heterogenous creditors," Policy Research Working Paper Series 675, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:wrk:warwec:459. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Margaret Nash)
If references are entirely missing, you can add them using this form.