@inbook{619a01a573e742a0a559b5bca12860a2,
title = "Sovereign Debt",
abstract = "In this chapter, we use a benchmark limited-commitment model to explore key issues in the economics of sovereign debt. After highlighting conceptual issues that distinguish sovereign debt as well as reviewing a number of empirical facts, we use the model to discuss debt overhang, risk-sharing, and capital flows in an environment of limited enforcement. We also discuss recent progress on default and renegotiation; self-fulfilling debt crises; and incomplete markets and their quantitative implications. We conclude with a brief assessment of the current state of the literature and highlight some directions for future research.",
keywords = "Debt overhang, Default, Sovereign debt",
author = "Mark Aguiar and Manuel Amador",
year = "2014",
doi = "10.1016/B978-0-444-54314-1.00011-2",
language = "English (US)",
series = "Handbook of International Economics",
publisher = "Elsevier B.V.",
pages = "647--687",
booktitle = "Handbook of International Economics",
}