How Long to Read Constrained Efficient Borrowing with Sovereign Default Risk

How Long Does it Take to Read Constrained Efficient Borrowing with Sovereign Default Risk?

It takes the average reader 1 hour and 1 minute to read Constrained Efficient Borrowing with Sovereign Default Risk by Juan Carlos Hatchondo

Assuming a reading speed of 250 words per minute. Learn more

Description

Using a quantitative sovereign default model, we characterize constrained efficient borrowing by a Ramsey government that commits to income-history-contingent borrowing paths taking as given ex-post optimal future default decisions. The Ramsey government improves upon the Markov government because it internalizes the effects of borrowing decisions in period t on borrowing opportunities prior to t. We show the effect of borrowing decisions in t on utility flows prior to t can be encapsulated by two single dimensional variables. Relative to a Markov government, the Ramsey government distorts borrowing decisions more when bond prices are more sensitive to borrowing, and changes in bond prices have a larger effect on past utility. In a quantitative exercise, more than 80% of the default risk is eliminated by a Ramsey government, without decreasing borrowing. The Ramsey government also has a higher probability of completing a successful deleveraging (without defaulting), while smoothing out the fiscal consolidation.

How long is Constrained Efficient Borrowing with Sovereign Default Risk?

Constrained Efficient Borrowing with Sovereign Default Risk by Juan Carlos Hatchondo is 61 pages long, and a total of 15,311 words.

This makes it 21% the length of the average book. It also has 19% more words than the average book.

How Long Does it Take to Read Constrained Efficient Borrowing with Sovereign Default Risk Aloud?

The average oral reading speed is 183 words per minute. This means it takes 1 hour and 23 minutes to read Constrained Efficient Borrowing with Sovereign Default Risk aloud.

What Reading Level is Constrained Efficient Borrowing with Sovereign Default Risk?

Constrained Efficient Borrowing with Sovereign Default Risk is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

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