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Credibility for Sale [PDF]

open access: possibleSSRN Electronic Journal, 2013
We develop a sovereign debt model with ocial and private creditors where the probability of default depends on both the level and the composition of liabilities. Higher exposure to ocial lenders improves incentives to repay but carries extra costs, due to overcharging or reduced ex-post exibility.
Dirk Niepelt, Harris Dellas
openaire   +6 more sources

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