eprintid: 10058353
rev_number: 16
eprint_status: archive
userid: 608
dir: disk0/10/05/83/53
datestamp: 2018-10-11 15:57:55
lastmod: 2021-11-16 00:41:13
status_changed: 2018-10-11 15:57:55
type: article
metadata_visibility: show
creators_name: Cole, HL
creators_name: Kehoe, PJ
title: Models of sovereign debt: Partial versus general reputations
ispublished: pub
divisions: UCL
divisions: B03
divisions: C03
note: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
abstract: Some economists argue that as long as governments can earn the market rate of return by saving abroad, standard reputation models cannot support debt. We argue that these standard reputation models are partial in the sense that actions of agents in one arena affect reputation in that arena only. We develop a general model of reputation in which if a government is viewed as untrustworthy in one relationship, this government will be viewed as untrustworthy in other relationships. We show that our general model of reputation can support large amounts of debt.
date: 1998-02
date_type: published
publisher: UNIV PENN
official_url: https://doi.org/10.2307/2527230
oa_status: green
full_text_type: other
language: eng
primo: open
primo_central: open_green
verified: verified_manual
elements_id: 1576410
doi: 10.2307/2527230
lyricists_name: Kehoe, Patrick
lyricists_id: PKEHO79
actors_name: Waragoda Vitharana, Nimal
actors_id: NWARR44
actors_role: owner
full_text_status: public
publication: International Economic Review
volume: 39
number: 1
pagerange: 55-70
pages: 16
issn: 0020-6598
citation:        Cole, HL;    Kehoe, PJ;      (1998)    Models of sovereign debt: Partial versus general reputations.                   International Economic Review , 39  (1)   pp. 55-70.    10.2307/2527230 <https://doi.org/10.2307/2527230>.       Green open access   
 
document_url: https://discovery.ucl.ac.uk/id/eprint/10058353/1/Kehoe__Models%20of%20sovereign%20debt%20partial%20versus%20general%20reputations.pdf