Data and codes for: Borrowing costs after sovereign debt relief
Principal Investigator(s): View help for Principal Investigator(s) Valentin Lang, University of Mannheim; David Mihalyi, Kiel Institute for the World Economy; Andrea Presbitero, International Monetary Fund and CEPR
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
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| replication_final_public | 04/11/2022 11:00:AM | ||
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application/pdf | 111.6 KB | 04/11/2022 06:35:AM |
Project Citation:
Lang, Valentin, Mihalyi, David, and Presbitero, Andrea. Data and codes for: Borrowing costs after sovereign debt relief. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-04-07. https://doi.org/10.3886/E156081V1
Project Description
Summary:
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Can debt moratoria help countries weather negative shocks? We exploit the Debt Service Suspension Initiative (DSSI) to study the bond market effects of deferring official debt repayments. Using daily data on sovereign bond spreads and synthetic control methods, we show that countries eligible for official debt relief experience a larger decline in borrowing costs compared to similar, ineligible countries. This decline is stronger for countries that receive a larger relief, suggesting that the effect works through liquidity provision. By contrast, the results do not support the concern that official debt relief could generate stigma on financial markets.
Scope of Project
JEL Classification:
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F34 International Lending and Debt Problems
H63 National Debt; Debt Management; Sovereign Debt
O23 Fiscal and Monetary Policy in Development
F34 International Lending and Debt Problems
H63 National Debt; Debt Management; Sovereign Debt
O23 Fiscal and Monetary Policy in Development
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