Author/Editor: Javier Bianchi, Juan Carlos Hatchondo, Leonardo Martinez.

Release Date:January, 2013

Two striking facts about international capital flows in emerging economies motivate this paper: (1) Governments hold large amounts of international reserves, for which they obtain a return lower than more...

Author/Editor: Juan Carlos Hatchondo, Leonardo Martinez, Juan M. Sanchez.

Release Date:January, 2012

This paper incorporates house price risk and mortgages into a standard incomplete market (SIM) model. The model is calibrated to match U.S. data and accounts for non-targeted features of the data more...

Author/Editor: Juan Carlos Hatchondo, Leonardo Martinez, Francisco Roch.

Release Date:January, 2012

This paper finds optimal fiscal rule parameter values and measures the effects of imposing fiscal rules using a default model calibrated to an economy that in the absence of a fiscal rule pays a more...

Author/Editor: Leonardo Martinez, Juan Carlos Hatchondo, Cesar Sosa Padilla.

Release Date:March, 2011

We propose a modification to a baseline sovereign default framework that allows us to quantify the importance of debt dilution in accounting for the level and volatility of the interest rate spread more...

Author/Editor: Leonardo Martinez, Juan Carlos Hatchondo, Horacio Sapriza.

Release Date:April, 2010

We study the sovereign default model that has been used to account for the cyclical behavior of interest rates in emerging market economies. This model is often solved using the discrete state space more...

Author/Editor: Leonardo Martinez, Ehtisham Ahmad.

Release Date:November, 2004

This paper argues that both horizontal and intertemporal competition among recipient governments are needed in order to ensure incentives for effective utilization of targeted transfers. This has more...