Front Matter Page
Research Department
Authorized for distribution by Eduardo Borensztein
Contents
I. Introduction
II. A Model of External Debt Rollover Crises
A. Assumptions
B. Optimal Crises
C. World Equilibrium
D. Implementation
E. Discussion
III. Orderly Debt Workouts
A. Contractual Approach
B. Statutory Approach
IV. Concluding Comments
References
Figures:
1. Conditional pdf of Project’s Probability of Success
2. Maximum Levels of Incentive—Compatible Debt and Pledgeable Output
3. Domestic Wealth and Welfare
4. Payoff from Early Repayment
Appendices:
I. Proof of Proposition 3
II. Proof of Proposition 7