Debt Relief and Adjustment Effort in a Multi-Period Model

Tengstam, Sven2006-04-122007-02-092007-02-0920051403-2465http://hdl.handle.net/2077/2714This 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.8 pages152697 bytesapplication/pdfenHIPC; Debt relief; Debt overhang; Investment; IncentivesDebt Relief and Adjustment Effort in a Multi-Period ModelReportEconomics