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The strategic use of debt reconsidered

โœ Scribed by Marco A. Haan; Linda A. Toolsema


Book ID
116556862
Publisher
Elsevier Science
Year
2008
Tongue
English
Weight
844 KB
Volume
26
Category
Article
ISSN
0167-7187

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๐Ÿ“œ SIMILAR VOLUMES


A model of strategic default of sovereig
โœ Nalin Kulatilaka; Alan J. Marcus ๐Ÿ“‚ Article ๐Ÿ“… 1987 ๐Ÿ› Elsevier Science ๐ŸŒ English โš– 787 KB

This paper presents a continuous-time stochastic model to study the timing decision of strategic default of sovereign debt. The debtor country precommits to an investment plan, finances part of it with a foreign loan, and maximizes the present value (PV) of utility from an infinite stream of consump