International Debt Shifting: The Value-Maximizing Mix of Internal and External Debt
نویسندگان
چکیده
منابع مشابه
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...
متن کاملInternational Debt and Economic Instability
The debt experience of the 1920s and 1930s was one of pervasive default. Half the outstanding Latin American debt was completely in default by 1949, and nearly half was serviced on an adjusted basis, having been written down as to principal and interest. Only a tiny 1.9 percent continued to be serviced on the tenns origmally contracted. By comparison, today's debt performance is dramatically su...
متن کاملExternal 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...
متن کاملInternal Finance versus Bank Debt
This paper considers a two-period model in which a firm needs outside financing in period 2. If a firm establishes a reputation with a bank already in the first period, it may reduce the cost and increase the availability of bank debt in the second period. To establish such a reputation, the firm must induce the bank to monitor in period 1. Bank monitoring effort is non-contractible, so the fir...
متن کاملEffects of Oil Returns and External Debt on the Government Expenditure: A Case Study of Syria
This study attempts to investigate the effect of oil returns and external debt on the government expenditure in Syria over the period 1970-2010. The Johansen cointegration test showed that oil returns and external debt have a positive and significant long run relationship with government expenditure. The Granger causality test indicates unidirectional short-run causality relationships running f...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: International Journal of the Economics of Business
سال: 2019
ISSN: 1357-1516,1466-1829
DOI: 10.1080/13571516.2019.1599189