Donor Herding and Domestic Debt Crisis /

This paper presents a new model based on the loan-pushing model by Basu (1991) to show how a domestic debt crisis can occur in a low-income country following donor herding. The model focuses on the rational herding behavior of donors due to payoff and information externalities. Although there are ma...

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Xehetasun bibliografikoak
Egile nagusia: Chirwa, Ephraim
Beste egile batzuk: Khamfula, Yohane Anthony, Mlachila, Montfort
Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2006.
Saila:IMF Working Papers; Working Paper ; No. 2006/109
Sarrera elektronikoa:Full text available on IMF
Deskribapena
Gaia:This paper presents a new model based on the loan-pushing model by Basu (1991) to show how a domestic debt crisis can occur in a low-income country following donor herding. The model focuses on the rational herding behavior of donors due to payoff and information externalities. Although there are many theoretical models on herding behavior, these models have not formally considered the relationship between donor herding and domestic debt crisis in a low-income country. This paper is an attempt to fill this gap. The paper shows that due to donor herding behavior a domestic debt crisis can occur once the actual debt level is above the desirable one.
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Deskribapen fisikoa:1 online resource (10 pages)
Formatua:Mode of access: Internet
ISSN:1018-5941
Sartu:Electronic access restricted to authorized BRAC University faculty, staff and students