Series: IMF Working Papers
Author(s): Abdelhak Senhadji
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 1997
Keywords: Debt Accumulation, Stochastic Dynamic General Equilibrium Model, External Shocks, Incomplete Information, Developing Countries, terms of trade, foreign debt, open economy
This paper analyzes the borrowing behavior of a small open economy of a developing country that relies heavily on imports for its capital formation and faces an upward-sloping supply function of foreign loans. Deci...