Download or read book Essays on International Financial Spillovers and Sovereign Default Risk written by Hamid Reza Tabarraei and published by . This book was released on 2014 with total page 187 pages. Available in PDF, EPUB and Kindle. Book excerpt: The goal of this thesis is to present theoretical and empirical investigations of mechanisms through which sovereign crises propagate across countries. In particular, I analyze the spillover effects of the European debt cri sis on emerging economies and on the banking system in Europe. The thesis includes four chapters in which the transmission mechanisms are analyzed from different angles. Chapter 1 and chapter \2 present theoretical models of sovereign contagion risk and sovereign default risk based on the literature of global games. Chapter 3 analyses empirically the role of international banking flows in propagating the Euro debt crisis t emerging economies. Finally, chapter 4 presents a dynamic stochastic general equilibrium mod (DSGE) to examine the impact of sovereign default risk on the banking system and the role of banks as financial intermediaries in transmitting shocks to the real economy.