OECD Sovereign Borrowing Outlook No.3

OECD Employment Outlook 2008

Despite some progress, there is still evidence of discrimination on the grounds of gender and ethnic or racial origins in OECD labour markets. Field experiments show pervasive ethnic discrimination in many countries. Indirect evidence shows that on average at least 8% of the gender employment gap and a larger proportion of the gender wage gap can be attributed to discrimination. Virtually all O...

OECD Employment Outlook

Sovereign Borrowing, Sanctions and Yield Spreads

We model sovereign debt in the absence of a bankruptcy code. Threat of trade sanctions and seizure of exports by the lenders are the drivers of enforcement of sovereign debt contracts.The borrower takes these potential actions into account when choosing optimal voluntary default and debt capacity. We obtain a closedform solution for the sovereign yield spreads that depend on the costs of sancti...

Oecd Economic Outlook N.65 June 1999

High and persistent unemployment remains a major problem... High and persistent unemployment remains a major economic and social problem for many OECD countries. Currently, some 35 million persons, or about 7 per cent of the labour force, are unemployed in the area as a whole (Figure IV.1). Many, particularly in Europe, have been without a job for a prolonged period. These people, and their dep...

Do Sovereign Credit Ratings Affect the Composition and Maturity of Sovereign Borrowing?

In this paper, I develop a theoretical model to analyze the optimal choice between bank loans and bond finance for a sovereign debtor. The model describes a market that is subject to moral hazard and adverse selection. I model the choice between the two debt instruments allowing for debt renegotiation in the event of financial distress, with the possibility of default. The model incorporates pr...