Debt and incentives in a dynamic context

• 成果类型: Article
• 署名作者: FernandezRuiz, J
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(95)01419-5
• 发表日期: 1996
• 页码: 139-151
• 关键词: Debt overhang; debt laffer curve; Debt forgiveness

摘要

The incentive problems associated with 'debt overhang' have been shown to make debt forgiveness potentially Pareto-improving. Models studying this argument abstract from the long-term character of the credit relationship. We show that the debt forgiveness argument is strengthened when incentive problems are considered in a multi-period context.