Repurchase and condonation of external debt in a voluntary repudiation model

Debt reduction is usually analyzed in models where default is involuntary and the gains from debt reduction derive from various disincentives linked to a large debt overhang. This paper uses a model in which default is voluntary and shows that debt reduction can be beneficial even in absence of thos...

Descripción completa

Detalles Bibliográficos
Autor: Kenen, Peter B.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1991
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:español
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/316
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/316
Access Level:acceso abierto
Palabra clave:debt reduction
voluntary default model
deuda externa
modelo de incumplimiento voluntario
Descripción
Sumario:Debt reduction is usually analyzed in models where default is involuntary and the gains from debt reduction derive from various disincentives linked to a large debt overhang. This paper uses a model in which default is voluntary and shows that debt reduction can be beneficial even in absence of those disincentives, by inducing debtors to renounce or postpone repudiation.