Using a panel of 45 major economies, we investigate the effects of geopolitical risk on the
dynamics of international capital flows. At aggregate level, capital flows for both advanced …

Why are episodes of sovereign default accompanied by deep recessions? The existing
literature cannot answer this question. On one hand, sovereign default models treat income …

Recent sovereign defaults are accompanied by interest rate spikes and deep recessions.
This paper develops a small open economy model to study default risk and its interaction …

This paper extends the baseline framework used in recent quantitative studies of sovereign
default by assuming that the government can borrow using long-duration bonds. This …

This paper develops a small open economy model to study sovereign default and debt
renegotiation for emerging economies. The model features both endogenous default and …

In theory, one of the main benefits of financial globalization is that it should allow for more
efficient international risk sharing. In this paper, we provide an empirical evaluation of the …

Under carbon cap-and-trade mechanism, we investigate the interaction of financial decision
and operational decision in an emission-dependent supply chain consisting of one …

We measure the effects of debt dilution on sovereign default risk and study debt covenants
that could mitigate these effects. We calibrate a baseline model with endogenous debt …

Emerging market economies (EMEs) have become the darlings of international investors
and the focus of enormous attention in academic, media, and policy circles. M. Ayhan Kose …

This paper develops an endogenous default risk model for small open economies that
interact with risk averse international investors whose preferences exhibit decreasing …