Sovereign risk and armed conflict: an event-study for colombia

R. Castañeda and Juan Vargas

Defence and Peace Economics, 2012, vol. 23, issue 2, 185-201

Abstract: We study the causal effect of recent landmark events of the Colombian armed conflict on the foreign perception of sovereign risk, as measured by the price of the Credit Default Swap (CDS) of Colombian bonds. We construct a Synthetic Control Group to use as the non-conflict counterfactual of the Colombian CDS price and compare its behavior around relevant conflict-event dates with that of the actual (conflict-affected) Colombian CDS. Results suggest that the impact of conflict on the foreign perception of sovereign risk is sizable but rather idiosyncratic, and depends on the political context surrounding each event.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1080/10242694.2011.597233 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Sovereign Risk and Armed Conflict: An Event-study for Colombia (2011)
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:taf:defpea:v:23:y:2012:i:2:p:185-201

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GDPE20

DOI: 10.1080/10242694.2011.597233

Access Statistics for this article

Defence and Peace Economics is currently edited by Professor Keith Hartley

More articles in Defence and Peace Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().