1. Almeida, V., Esquivel, C., Kehoe, T., et al. (2025). Default and Interest Rate Shocks: Renegotiation Matters.

    Note: What if lender discount rate was a function of the risk free rate, which affects the outcome of bargaining?

  2. Mendoza, E., & Yue, V. (2011). A General Equilibrium Model of Sovereign Default and Business Cycles.