|Debt Sustainability under Catastrophic Risk: The Case for Government Budget Insurance|
Author/Editor: Eduardo A. Cavallo, Patricio Valenzuela, Eduardo Borensztein.
Release Date:February, 2008
Natural disasters are an important source of vulnerability in the Caribbean region. Despite being one of the more disaster-prone areas of the world, it has one of the lowest levels of insurance more...
|The Determinants of Corporate Risk in Emerging Markets: An Option-Adjusted Spread Analysis|
Author/Editor: Eduardo A. Cavallo, Patricio Valenzuela.
Release Date:September, 2007
This study explores the determinants of corporate bond spreads in emerging markets economies. Using a largely unexploited dataset, the paper finds that corporate bond spreads are determined by more...
|Exchange Rate Policy and Liability Dollarization: What Do the Data Reveal About Causality?|
Author/Editor: Pelin Berkmen, Eduardo A. Cavallo.
Release Date:February, 2007
The paper identifies the contemporaneous relationship between exchange rate policy and liability dollarization using three different definitions of dollarization. The presence of endogeneity makes more...