The literature on sovereign default is abundant and uniformly admits that since the government cannot be forced to repay its debts, the explanation of why in spite of this it usually honors its obligations, is not straightforward. The literature that aims to explain this phenomenon points to several factors that affect the probability of sovereign default.
A thorough summary of the literature on sovereign default can be found for example in Panizza et al ., (2009); hence, we provide below just a very brief recapitulation of the main arguments, pointing to the
Abrahamse, W., Steg, L., Vlek, C., and Rothengatter, T., 2005. A review of intervention studies aimed at household energy conservation. Journal of Environmental Psychology, 25(3), 273-291. doi: http://dx.doi.org/10.1016/j.jenvp.2005.08.002
Allcott, H., 2011. Social norms and energy conservation. Journal of Public Economics, 95(9-10), 1082-1095. doi: http://dx.doi.org/10.1016/j.jpubeco.2011.03.003
Allcott, H., and Mullainathan, S., 2010. Behavior and Energy Policy. Science, 327(5970), 1204-1220. doi