Sovereign debt and consumption smoothing

• 成果类型: Article
• 署名作者: Grossman, HI; Han, T
• 署名单位: Brown University; Chung Ang University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(99)00011-2
• 发表日期: 1999
• 页码: 149-158
• 关键词: sovereign debt; consumption smoothing; contingent debt servicing

摘要

This paper shows that whether or not a sovereign can borrow to smooth consumption depends both on how consumption smoothing is achieved, whether by contingent debt issuance or by contingent debt servicing, and on the penalty for debt repudiation. If a sovereign that repudiated its debt could not borrow again, but could continue to save and to dissave, then contingent debt issuance, without contingent debt servicing, cannot support a positive amount of uncollateralized sovereign debt. But, with this same penalty for repudiation, contingent debt servicing supports a positive amount of uncollateralized sovereign debt. (C) 1999 Elsevier Science B.V. All rights reserved. JEL classtfication: F34; H63.