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dc.contributor.authorGhosal, Sayantan
dc.contributor.authorMiller, Marcus
dc.contributor.authorThampanishvong, Kannika
dc.date.accessioned2014-03-31T14:31:01Z
dc.date.available2014-03-31T14:31:01Z
dc.date.issued2010-08
dc.identifier.citationGhosal , S , Miller , M & Thampanishvong , K 2010 ' Delay and haircuts in sovereign debt : recovery and sustainability ' School of Economics & Finance Discussion Paper , no. 1004 , University of St Andrews .en
dc.identifier.issn0962-4031
dc.identifier.otherPURE: 4711942
dc.identifier.otherPURE UUID: c3b728f2-00b7-4074-a457-26c640890175
dc.identifier.urihttp://hdl.handle.net/10023/4550
dc.description.abstractOne of the striking aspects of recent sovereign debt restructurings is, conditional on default, delay length is positively correlated with the size of 'haircut', which is size of creditor losses. In this paper, we develop an incomplete information model of debt restructuring where the prospect of uncertain economic recovery and the signalling about sustainability concerns together generate multi-period delay. The results from our analysis show that there is a correlation between delay length and size of haircut. Such results are supported by evidence. We show that Pareto ranking of equilibria, conditional on default, can be altered once we take into account the ex ante incentive of sovereign debtor. We use our results to evaluate proposals advocated to ensure orderly resolution of sovereign debt crises.
dc.format.extent33
dc.language.isoeng
dc.publisherUniversity of St Andrews
dc.relation.ispartofseriesSchool of Economics & Finance Discussion Paperen
dc.rights(c) the authoren
dc.subjectdebt restructuringen
dc.subjectdelayen
dc.subjecthaircutsen
dc.subjectgrowthen
dc.subjectsustainabilityen
dc.subjectinformationen
dc.subjectHB Economic Theoryen
dc.subject.lccHBen
dc.titleDelay and haircuts in sovereign debt : recovery and sustainabilityen
dc.typeWorking or discussion paperen
dc.description.versionPostprinten
dc.contributor.institutionUniversity of St Andrews.School of Economics and Financeen
dc.identifier.urlhttp://ideas.repec.org/p/san/wpecon/1004.htmlen


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