000			02095cam a22003257 4500
001			w1703
003			NBER
005			20211020115149.0
006			m o d
007			cr cnu||||||||
008			210910s1985 mau fo 000 0 eng d
100	1		_aCohen, Daniel. _98236
245	1	0	_aGrowth and External Debt Under Risk of Debt Repudiation / _cDaniel Cohen, Jeffrey Sachs.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1985.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w1703
500			_aSeptember 1985.
520	3		_aWe analyze the pattern of growth of a nation which borrows abroad and which has the option of repudiating its foreign debt. We show that the equilibrium strategy of competitive lenders is to make the growth of the foreign debt contingent on the growth of the borrowing country. We give a closed-form solution to a linear version of our model. The economy, in that case, follows a two-stage pattern of growth. During the first stage, the debt grows more rapidly than the economy. During the second stage, both the debt and the economy grow at the same rate, and more slowly than in the first stage. During this second stage, the total interest falling due on the debt is never entirely repaid; only an amount proportional to the difference of the rate of interest and the rate of growth of the economy is repaid each period.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aF - International Economics _2Journal of Economic Literature class.
700	1		_aSachs, Jeffrey.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w1703.
856	4	0	_uhttps://www.nber.org/papers/w1703
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w1703
942			_2ddc _cW-PAPER
999			_c346854 _d305416