05209oam 22012254 450 991080748740332120240402044604.01-4623-4167-597866128410331-282-84103-31-4519-9737-X1-4518-7010-8(CKB)3170000000055043(SSID)ssj0000943322(PQKBManifestationID)11502965(PQKBTitleCode)TC0000943322(PQKBWorkID)10978112(PQKB)10859402(OCoLC)762485783(MiAaPQ)EBC1605821(IMF)WPIEE2008152(EXLCZ)99317000000005504320020129d2008 uf 0engurcnu||||||||txtccrA Model of Sovereign Debt in Democracies /Ali Alichi1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (36 pages) illustrations, tablesIMF Working PapersIMF working paper ;WP/08/152Bibliographic Level Mode of Issuance: Monograph1-4519-1463-6 Includes bibliographical references.Intro -- Contents -- I. Introduction -- II. Relevant Literature and Our Contribution -- III. The Model -- Theoretical Model -- A. Insurance Contracts -- B. Definition of Default -- C. Sequence of Events -- D. The Foreign Insurer -- E. The Country -- The Voting Process -- The Turn-Out Rate -- The Old Voters -- The Young Voters -- F. Contract Concepts -- Default-Free Contract -- Default-Free Contract for Quadratic Preferences -- Default-Repayment Contract -- Comparison of Contract Conditions -- Default-Renegotiation Contract -- G. Income Heterogeneity and Changes in Population Mixture -- IV. Empirical Results -- A. List of Countries -- B. Proofs.This paper develops and empirically tests a political economy model of sovereign debt. The main incentive for repaying sovereign debt is to maintain access to international capital markets. However, in a democracy, one generation may choose default regardless of its consequences for future generations. An old generation with little concern for its country's access to capital markets can force a default on debt if it has the majority of voters. On the other hand, if the younger generation is more numerous, it can force repayment of previously defaulted debt. Other voter heterogeneities, such as in income, can generate similar results.IMF Working Papers; Working Paper ;No. 2008/152Debts, PublicEconometric modelsCapital marketEconometric modelsExports and ImportsimfFinance: GeneralimfInsuranceimfPublic FinanceimfIndustries: Financial ServicesimfInsurance CompaniesimfActuarial StudiesimfDebtimfDebt ManagementimfSovereign DebtimfPension FundsimfNon-bank Financial InstitutionsimfFinancial InstrumentsimfInstitutional InvestorsimfGeneral Financial Markets: General (includes Measurement and Data)imfInternational Lending and Debt ProblemsimfInsurance & actuarial studiesimfFinanceimfPublic finance & taxationimfInternational economicsimfPublic debtimfInsurance companiesimfInternational capital marketsimfDebt defaultimfDebts, PublicimfCapital marketimfDebts, ExternalimfDebts, PublicEconometric models.Capital marketEconometric models.Exports and ImportsFinance: GeneralInsurancePublic FinanceIndustries: Financial ServicesInsurance CompaniesActuarial StudiesDebtDebt ManagementSovereign DebtPension FundsNon-bank Financial InstitutionsFinancial InstrumentsInstitutional InvestorsGeneral Financial Markets: General (includes Measurement and Data)International Lending and Debt ProblemsInsurance & actuarial studiesFinancePublic finance & taxationInternational economicsPublic debtInsurance companiesInternational capital marketsDebt defaultDebts, PublicCapital marketDebts, External336.340151954Alichi Ali1599382DcWaIMFBOOK9910807487403321A Model of Sovereign Debt in Democracies3986917UNINA