Strategic Selection and Sovereign Default topic of Tuesday World Forum Nov. 3

Professor of Political Science, Yong Kyun Kim will be the featured speaker at November's Tuesday World Forum, November 3, 12-12:50 pm in George Wilson Hall.  Professor Kim will discuss, "Strategic Selection and Sovereign Default."  "This talk is about a game-theoretic analysis of sovereign default, i.e., government's failure to pay back its debt extended by foreign banks. I will highlight the strategic aspects of sovereign-creditor interactions under uncertainty in shaping the likelihood of sovereign default. Specifically, two steps of strategic selection will be considered: sovereigns must select themselves in by sending a costly signal; banks then try to screen good from bad risks. Only those bad-risk sovereigns that are able to pass the two steps are those who actually default." 

The lecture is free and open to the public.