Bhandari, Jagdeep S.; Haque, Nadeem Ul; Turnovsky, … - In: IMF Staff Papers 37 (1990) 2, pp. 388-417
An optimizing growth model for a highly indebted small open economy is constructed and analyzed. An important innovation in the model is the incorporation of sovereign risk through the specification of an upward-sloping foreign debt supply function. The model is used to examine the interaction...