Sources of Debt Accumulation in a Small Open Economy
| Autor: | Abdelhak S Senhadji |
|---|---|
| Rok vydání: | 1997 |
| Předmět: |
Supply
Information economy media_common.quotation_subject Small open economy International economics Monetary economics External debt Terms of trade Debt Economics General Earth and Planetary Sciences Debt Accumulation Stochastic Dynamic General Equilibrium Model External Shocks Incomplete Information Developing Countries terms of trade foreign debt open economy Open economy Internal debt General Environmental Science media_common |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.882716 |
| Popis: | This paper analyzes the borrowing behavior of a small open economy of a developing country that relies heavily on imports for its capital formation and faces an upward-sloping supply function of foreign loans. Decision makers face uncertainty about the longevity of external shocks. That uncertainty generates forecast errors that lead to substantial debt accumulation. It is found that the assumption of an upward-sloping supply function of foreign loans, which is a more realistic formulation for developing countries than the usual perfect elasticity, offers an alternative to the Uzawa-type utility function for analyzing asset accumulation in the small open economy framework. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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