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Table 1 Parameter values

From: On the role of financial aid in a default episode

   Value Source
Country risk aversion σ 2.00 Standard in the literature
Discount factor β 0.81 Arellano (2008), annual frequency
Consumption weight α 0.83 Argentinian data
Re-entry probability μ 0.10 Benjamin et al. (2009)
Output loss in autarky θ 0.03 Arellano (2008)
Financial aid δ 0.00  
Investors risk aversion λ 5.00 Lizarazo (2013)
Risk-free interest rate r 0.04 Standard in the literature
Endowment process’s parameters ρ y 0.62 Argentinian data
σ y 0.054