A Debt Overhang Model for Low-Income Countries : Implications for Debt Relief

Author/Editor:

Junko Koeda

Publication Date:

October 1, 2006

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper presents a theoretical model to explain how debt overhang is generated in low-income countries and discusses its implications for debt relief. The paper indicates that the extent of debt overhang, and the effectiveness of debt relief, would depend on a recipient country's initial economic conditions and level of total factor productivity.

Series:

Working Paper No. 06/224

Subject:

Frequency:

Annually

English

Publication Date:

October 1, 2006

ISBN/ISSN:

9781451864847/1018-5941

Stock No:

WPIEA2006224

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

22

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