MARC Record from Scriblio

LEADER: 02037cam 22003257a 4500
001 2005615305
003 DLC
005 20050113091455.0
007 cr |||||||||||
008 050110s2004 mau sb 000 0 eng
010 $a 2005615305
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aAguiar, Mark.
245 10 $aDefaultable debt, interest rates and the current account$h[electronic resource] /$cMark Aguiar, Gita Gopinath.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2004.
490 1 $aNBER working paper series ;$vworking paper 10731
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 1/10/2005.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"World capital markets have experienced large scale sovereign defaults on a number of occasions, the most recent being Argentina's default in 2002. In this paper we develop a quantitative model of debt and default in a small open economy. We use this model to match four empirical regularities regarding emerging markets: defaults occur in equilibrium, interest rates are countercyclical, net exports are countercyclical, and interest rates and the current account are positively correlated. That is, emerging markets on average borrow more in good times and at lower interest rates as compared to slumps. Our ability to match these facts within the framework of an otherwise standard business cycle model with endogenous default relies on the importance of a stochastic trend in emerging markets"--National Bureau of Economic Research web site.
650 0 $aInterest rates.
650 0 $aAccounts current.
650 0 $aDefault (Finance)
700 1 $aGopinath, Gita,$d1971-
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 10731.
856 40 $uhttp://papers.nber.org/papers/w10731