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Undisclosed Debt Sustainability

By Laura Alfaro and Fabio Kanczuk

òòò½Íø Papers and Proceedings, May 2022

Over the past decade, non-Paris Club creditors, notably China, have become an important source of financing for low- and middle-income countries. In contrast with typical sovereign debt, these lending arrangements are not public, and other creditors have ...

Sovereign Debt Auctions in Turbulent Times

By Harold Cole, Daniel Neuhann, and Guillermo °¿°ù»å´Çñ±ð³ú

òòò½Íø Papers and Proceedings, May 2022

We use a model of multiunit discriminatory auctions with asymmetrically informed risk-averse bidders to analyze Mexican sovereign bond auctions during periods of macroeconomic stress. We argue that the discriminatory protocol provides insurance benefits t...

Hidden Defaults

By Sebastian Horn, Carmen M. Reinhart, and Christoph Trebesch

òòò½Íø Papers and Proceedings, May 2022

China's lending boom to developing countries is morphing into defaults and debt distress. Given the secrecy surrounding China's loans, the associated defaults remain "hidden," as missed payments and restructuring details are not disclosed. We construct an...

Hidden Debt

By Bulent Guler, Yasin KürÅŸat Ö²Ô»å±ð°ù, and Temel Taskin

òòò½Íø Papers and Proceedings, May 2022

We study the role of transparency in debt and default dynamics in a quantitative sovereign default model augmented with asymmetric information. We assume that the sovereign debt portfolio is not transparent and part of the debt is not observable to lender...

Immigration and Labor Market (Mis)perceptions

By ±·¾±³¦´Ç±ôá²õ Ajzenman, Patricio Dominguez, and Raimundo Undurraga

òòò½Íø Papers and Proceedings, May 2022

Exposure to immigrants often triggers sentiments of hostility and backlash among native-born populations. Among the main concerns identified by surveys, labor market conditions typically rank at the top. We combine a two-way fixed effects model with a Bar...