Waiting for a haircut? A bargaining perspective on sovereign debt restructuring

Ghosal, S. , Miller, M. and Thampanishvong, K. (2019) Waiting for a haircut? A bargaining perspective on sovereign debt restructuring. Oxford Economic Papers, 71(2), pp. 405-420. (doi: 10.1093/oep/gpy048)

Abstract

Recent investigation of sovereign debt negotiations finds that serious debt restructuring typically involves multi-period delay. We develop an incomplete information bargaining model to account for this, highlighting economic recovery and sustainability considerations as complementary reasons for delay. Evidence relating to settlements, along with the policy implications of our analysis, are discussed.

• Item Type: Articles
• Additional Information: This work was supported by the Economic and Social Research Council [RES 156-25-0032, RES 051-27-0125].
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Ghosal, Professor Sayantan
• Authors: Ghosal, S., Miller, M., and Thampanishvong, K.
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: Oxford Economic Papers
• Publisher: Oxford University Press
• ISSN: 0030-7653
• ISSN (Online): 1464-3812
• Published Online: 28 September 2018
• Copyright Holders: Copyright © 2018 Oxford University Press
• First Published: First published in Oxford Economic Papers 71(2):405-420
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher