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Sovereign Debt Disputes: A Database on Government Coerciveness During Debt Crises

Cover: Journal of International Money and Finance, 31 (2)

Cover: Journal of International Money and Finance, 31 (2)

Henrik Enderlein, Christoph Trebesch, Laura von Daniels – 2012

This paper measures “debt disputes” between governments and foreign private creditors in periods of sovereign debt crises. We construct an index of government coerciveness, consisting of 9 objective sub-indicators. Each of these sub-indicators captures unilateral government actions imposed on foreign banks and bondholders. The results provide the first systematic account of debt crises that goes beyond a binary categorization of default versus non-default. Overall, government behavior and rhetoric show a strong variability, ranging from highly confrontational to very smooth crisis resolution processes. In a preliminary analysis on the determinants of coercive behavior, we find political insti- tutions to be significant, while economic and financial factors play a lesser role. These results open up an agenda for future research.

Title
Sovereign Debt Disputes: A Database on Government Coerciveness During Debt Crises
Publisher
Elsevier
Location
Amsterdam
Keywords
Research Project D4
Date
2012
Identifier
ISSN 0261-5606
Source(s)
Appeared in
Journal of International Money and Finance, 31 (2), 250-266.
Language
eng
Type
Text