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Debt Relief and Adjustment Effort in a Multi-Period Model

Abstract
This paper shows that if the period following the granting of debt relief is taken into account, debt relief increases adjustment effort (investment), irrespective of whether there is an initial debt overhang or not.
University
Göteborg University. School of Business, Economics and Law
URI
http://hdl.handle.net/2077/2714
Collections
  • Working papers
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gunwpe0176.pdf (149.1Kb)
Date
2005
Author
Tengstam, Sven
Keywords
HIPC; Debt relief; Debt overhang; Investment; Incentives
Publication type
Report
ISSN
1403-2465
Series/Report no.
Working Papers in Economics, nr 176
Language
en
Metadata
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