DOMESTIC AND EXTERNAL SOVEREIGN DEBT
构建了一个包含市场分割和金融抑制的模型，解释政府如何利用国内市场的垄断力量增加外部债务能力，并说明违约会丧失分割债务市场的交易收益。
Abstract We develop a model that features costly market segmentation and financial repression to link domestic and external sovereign debt with default. In a financially repressed economy, a government that exploits its market power in the domestic economy can also increase its external debt capacity, owing to a novel, additional endogenous cost of default. A government forfeits the gains from trading in segmented debt markets when it defaults. Among other empirical regularities, our model can account for the heterogeneity in sovereign debt levels of nonadvanced economies, based on their level of financial development.