Debt games

International debt rescheduling has been marked by complex bargaining both historically and in the contemporary epoch. In this process, there has been significant variation in the amount of economic adjustment undertaken by debtors, the concessions made by private lenders, and the type of intervention by creditor governments and international organizations. Professor Vinod K. Aggawal develops an original formal model that explains these phenomena and predicts debt rescheduling outcomes over the last 170 years in Mexico, Peru, Argentina, and Brazil.