Debt, debt relief, and growth : a bargaining approach

This report compares and identifies two ways that Governments can " up-front " the adjustment effort: accumulating reserves; and engaging in an equity swap. The authors compare these methods with a constant rescheduling agreement which assumes that no reserves can be accumulated and that t...

• Main Author: Cohen, Daniel
• Corporate Author: Banco Mundial
• Other Authors: Verdier, Thierry
• Format: Book
• Published: Washington, D.C. World Bank 1991
• Series: Policy, research, and external affairs working papers no. WPS 762
• Subjects: DEUDA PUBLICA; REBAJA DE LA DEUDA; CONVERSIONES DE LA DEUDA

Table of Contents:

• 1. Introduction
• 2. Framework of analysis
• 3. Characterization of the memoriless subgame perfect equilibrium
• 4. The role of reserves
• 5. Debt relief and debt equity swaps
• Appendix 1: Existence and uniqueness of the stationary subgame perfect equilibrium
• Appendix 2: Proof of proposition 2
• Appendix 3: Proof of proposition 3
• References.