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Partial Default

Published • Jul 9, 2019
NobleIDNI3P16W68R43S79
Authors:
Cristina Arellano
,
Xavier Mateos‐Planas
,
José-V́ıctor Ŕıos-Rull

Abstract

Using 50 years of data for emerging markets, we document that sovereign governments partially default often and with varying intensity, resulting in lengthy default episodes with hump-shaped patterns for partial default and debt. Default episodes lead to haircuts for lenders but not to reductions in...

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