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dc.creatorCuadra, Gabriel
dc.creatorRamos‑Francia, Manuel
dc.creatorGarcia‑Verdu, Santiago
dc.date.issued2018-10-01
dc.identifier.issn2196-436X
dc.identifier.urihttp://hdl.handle.net/11651/3222
dc.descriptionSovereign default, fiscal policy, financial aid
dc.description.abstractOur aim is to explore the role of financial aid in a default episode. To that end, we develop a dynamic stochastic quantitative model of sovereign default featuring fiscal policy, endogenous financial aid and risk-averse foreign lenders. After calibrating the model, we feed output shocks into the model to show that it captures some of the most salient features of the fiscal and debt situation in Argentina during the 1998–2002. This underscores the economic nature of the decision to default and the role that official aid could have taken in avoiding such an event. In effect, given the economic challenges endured by Argentina, a full-fledged default took place. In addition, we discuss a number of policy implications associated with financial aid programs aimed at preventing sovereign default episodes.
dc.formatapplication/PDF
dc.language.isoeng
dc.publisherCentro de Investigación y Docencia Económicas
dc.relation.ispartofLatin American Economic Review, volumen 27, número 1, octubre de 2018
dc.rightsLa revista Latin American Economic Review autoriza a poner en acceso abierto de conformidad con las licencias CREATIVE COMMONS, aprobadas por el Consejo Académico Administrativo del CIDE, las cuales establecen los parámetros de difusión de las obras con fines no comerciales. Lo anterior sin perjuicio de los derechos morales que corresponden a los autores.
dc.source2196-436X
dc.titleOn the role of financial aid in a default episode
dc.typeArtículo
dc.accessrightsAcceso abierto
dc.recordIdentifier000003222
dc.rights.licenseCreative Commons Reconocimiento-NoComercial-SinObraDerivada 4.0 International CC BY-NC-ND
dc.identifier.citationEn: Latin American Economic Review, volumen 27, número 1, octubre de 2018
dc.identifier.doihttps://doi.org/10.1186/s40503-018-0060-2
dc.identifier.urlhttps://link.springer.com/article/10.1186/s40503-018-0060-2


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