Hyungseok Joo

Dr Hyungseok Joo


Lecturer in Economics
+44 (0)1483 682787
18 AD 00
Monday 15:00-17:00

Academic and research departments

Faculty of Arts and Social Sciences, School of Economics.

Biography

Research

Research interests

My teaching

My publications

Publications

Tamon Asonuma, Hyungseok Joo (2020)Sovereign Debt Restructuring: Delays in Renegotiation and Risk Averse Creditors, In: Journal of the European Economic Association Oxford University Press

Foreign creditors’ business cycles influence both the process and the outcome of sovereign debt restructurings. We compile two datasets on creditor committees and chairs and on creditor business and financial cycles at the restructurings, and find that when creditors experience high GDP growth, restructurings are delayed and settled with smaller haircuts. To rationalize these stylized facts, we develop a theoretical model of sovereign debt with multi-round renegotiations between a risk averse sovereign debtor and a risk averse creditor. The quantitative analysis of the model shows that high creditor income results in both longer delays in renegotiations and smaller haircuts. Our theoretical predictions are supported by data. (JEL: F34, F41, H63)