Date: Jun.21^st, 2019

Time: 10:00-11:30 A.M.

Speaker: FENG Zhigang

Venue: Room 236, School of Economics, Yuquan Campus

[Speaker Intro]

Dr. Feng Zhigang taught at the University of Zurich in Switzerland, Purdue University in the United States, and the University of Illinois at Urbana–Champaign successively. Since 2016, he has been an assistant professor in Economics at the University of Nebraska Omaha in the United States. His research fields mainly involve macroeconomics, public finance, labor economics, and health economics. He has published several papers in international journals such as International Economic Review, Quantitative Economics, Journal of Economic Behavior and Organization, Review of Economic Dynamics, Economic Theory. He has been invited to many international academic conferences and internationally renowned universities for academic achievements. He convened and hosted Mini-conference on Quantitative Macro and Public Finance in November 2015.

【Abstract】

We present a quantitative framework for sovereign default using a novel numerical algorithm for the computation of sustainable debt paths. We extend the prototypical model of debt repudiation in several directions to simulate observed patterns of sovereign default on macroeconomic activity, the debt-to-GDP ratio, and the credit risk spread. We also address some scal and nancial frictions neglected in the literature. We introduce physical capital accumulation and labor, and model the costs of default as persistent losses in TFP that may even arise prior to default. The sovereign collects tax revenues, issues external debt, and can impose a haircut on foreign creditors.