EconPapers    
Economics at your fingertips  
 

The politics of sovereign defaults

Juan Hatchondo and Leonardo Martinez

Economic Quarterly, 2010, issue 3Q, 291-317

Abstract: In this article, we study the interplay between political factors and default decisions. First, we survey two branches of theoretical studies. One shows that governments may be willing to repay their debt because it is in the best interest of local agents with political power. The other one discusses how political turnover affects sovereign default risk. Second, we describe a large body of empirical studies that find evidence of the influence of political stability and other characteristics of a political system on default risk. Finally, we examine the role of political factors in five recent default episodes.

Keywords: Business; cycles (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
http://www.richmondfed.org/publications/research/e ... q3/pdf/hatchondo.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedreq:y:2010:i:3q:p:291-317:n:v.96no.3

Ordering information: This journal article can be ordered from
http://www.richmondfed.org/publications/

Access Statistics for this article

More articles in Economic Quarterly from Federal Reserve Bank of Richmond Contact information at EDIRC.
Bibliographic data for series maintained by Christian Pascasio ().

 
Page updated 2019-08-20
Handle: RePEc:fip:fedreq:y:2010:i:3q:p:291-317:n:v.96no.3