TY  - JOUR
AU  - Arellano, Cristina
AU  - Atkeson, Andrew
AU  - Wright, Mark
TI  - External and Public Debt Crises
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 21456
PY  - 2015
Y2  - August 2015
DO  - 10.3386/w21456
UR  - http://www.nber.org/papers/w21456
L1  - http://www.nber.org/papers/w21456.pdf
N1  - Author contact info:
Cristina Arellano
Federal Reserve Bank of Minneapolis
Research Department
90 Hennepin Avenue
Minneapolis, MN 55401
Tel: (612) 204-5276
Fax: (612) 204-5515
E-Mail: arellano.cristina@gmail.com

Andrew Atkeson
Bunche Hall 9381
Department of Economics
UCLA
Box 951477
Los Angeles, CA  90095-1477
Tel: 866/312-9770
Fax: 310/825-9528
E-Mail: andy@atkeson.net

Mark L.J. Wright
Federal Reserve Bank of Minneapolis
90 Hennepin Avenue
Minneapolis, MN 55401
E-Mail: mark.wright@mpls.frb.org
M1  - published as Cristina Arellano, Andrew Atkeson, Mark Wright. "External and Public Debt Crises," in Martin Eichenbaum and Jonathan A. Parker, editors, "NBER Macroeconomics Annual 2015, Volume 30" University of Chicago Press (2016)

M3  - presented at "30th Annual Conference on Macroeconomics", April 17-18, 2015
AB  - The recent debt crises in Europe and the U.S. states feature similar sharp increases in spreads on government debt but also show important differences. In Europe, the crisis occurred at high government indebtedness levels and had spillovers to the private sector. In the United States, state government indebtedness was low, and the crisis had no spillovers to the private sector. We show theoretically and empirically that these different debt experiences result from the interplay between differences in the ability of governments to interfere in private external debt contracts and differences in the flexibility of state fiscal institutions.
ER  -