External Debt and Growth

Defense Expenditures, External Public Debt and Growth in Developing Countries

Optimal external debt and default

This paper analyses whether sovereign default episodes can be seen as contingencies of optimal international lending contracts. The model considers a small open economy with capital accumulation and without commitment to repay debt. Taking first order approximations of Bellman equations, I derive analytical expressions for the equilibrium level of debt and the optimal debt contract. In this env...

External Financing Method: Financing through Debt and Stock Issuance

Countries need short, medium, and long-term investment plans for production growth and development. Different sources for these investments can be supplied through retained profit, stock issuance, and bank loans, or a combination them. Institutions and firms need huge amount of capitals for their survival, production, and also development of activities. In addition, these institutions and firms...

External and Public Debt Crises: Discussion

Inequality, debt and growth

Foreword Like most economists, I internalised very early on in my career the concept of the "equity-efficiency tradeoff"; the idea that policy measures, such as progressive taxation or means-tested welfare benefits, that reduced income inequality would, because of their negative impact on incentives, be likely to reduce labour supply, effort and ultimately economic growth. At a theoretical leve...