Sources of Debt Accumulation in a Small Open Economy:
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...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1997
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Schriftenreihe: | IMF Working Papers
Working Paper No. 97/146 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | 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 |
Beschreibung: | 1 Online-Ressource (26 p) |
ISBN: | 1451856601 9781451856606 |
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spelling | Senhadji Semlali, A. Verfasser aut Sources of Debt Accumulation in a Small Open Economy Senhadji Semlali, A Washington, D.C International Monetary Fund 1997 1 Online-Ressource (26 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 97/146 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 Online-Ausg http://elibrary.imf.org/view/IMF001/06329-9781451856606/06329-9781451856606/06329-9781451856606.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Senhadji Semlali, A. Sources of Debt Accumulation in a Small Open Economy |
title | Sources of Debt Accumulation in a Small Open Economy |
title_auth | Sources of Debt Accumulation in a Small Open Economy |
title_exact_search | Sources of Debt Accumulation in a Small Open Economy |
title_exact_search_txtP | Sources of Debt Accumulation in a Small Open Economy |
title_full | Sources of Debt Accumulation in a Small Open Economy Senhadji Semlali, A |
title_fullStr | Sources of Debt Accumulation in a Small Open Economy Senhadji Semlali, A |
title_full_unstemmed | Sources of Debt Accumulation in a Small Open Economy Senhadji Semlali, A |
title_short | Sources of Debt Accumulation in a Small Open Economy |
title_sort | sources of debt accumulation in a small open economy |
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