@misc{28137,
title = {The Domestic Side of Sovereign Defaults},
author = {Erce, Aitor and Mallucci, Enrico and Picarelli, Mattia},
year = {2020},
doi = {10.18235/0002318},
abstract = {Sovereign defaults are increasingly affecting liabilities governed by local law and held by local residents. This paper provides an overview of the existing literature on domestic defaults, describes a novel dataset that codifies defaults according to the jurisdiction of the instruments involved, and shows that domestic and foreign-law defaults have different macroeconomic implications. While a default affects economic growth regardless the legal jurisdiction, local-law defaults are more likely to trigger domestic financial instability and credit tightening, and foreign-law defaults are more likely to tighten access to external financing sources.},
url = {https://doi.org/10.18235/0002318}
}