The role of lenders' trust in determining borrowing conditions for sovereign debt: An analysis of one-period government bonds with default risk

Research, Preprint English OPEN
Guo, Yanling;
(2015)
  • Publisher: Kiel Institute for the World Economy (IfW) Kiel
  • Subject: fiscal policy | H63 | H74 | H62 | F34 | H87 | sovereign debt | government borrowing | sovereign default | Public debt,sovereign debt,sovereign default,domestic debt,external debt,fiscal policy,government bond,government borrowing | Public debt | government bond | H6 | external debt | domestic debt
    • jel: jel:H62 | jel:F34 | jel:H87 | jel:H63 | jel:H74 | jel:H6
      ddc: ddc:330

In this paper, the author considers the sovereign debt in the form of one-period government bonds with default risk, which can be purchased by and traded among domestic and foreign investors. She shows that the weight assigned to the lenders' interest by the borrowing g... View more
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