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Sovereign default and debt renegotiation

โœ Scribed by Vivian Z. Yue


Book ID
116659698
Publisher
Elsevier Science
Year
2010
Tongue
English
Weight
423 KB
Volume
80
Category
Article
ISSN
0022-1996

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This paper presents a continuous-time stochastic model to study the timing decision of strategic default of sovereign debt. The debtor country precommits to an investment plan, finances part of it with a foreign loan, and maximizes the present value (PV) of utility from an infinite stream of consump