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on institutions and policies. The Debt-Laffer curve looses statistical significance once institutional quality is … controlled for and debt overhang seems to be at work exclusively in countries with sound institutions. On the contrary, external … debt proves to be irrelevant for countries with weak institutions. A policy implication is that efficient debt relief …
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(HIPC) Initiative to include the analysis of domestic public debt and other feedback effects into the usual debt …
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We revisit the debt overhang question. We first use non-parametric techniques to isolate a panel of countries on the downward sloping section of a debt Laffer curve. In particular, overhang countries are ones where a threshold level of debt is reached in sample, beyond which (initial) debt ends...
Persistent link: https://www.econbiz.de/10005123812
private credit to decline. Stronger financial institutions boost default costs by amplifying these balance-sheet effects. This … public debt and financial institutions are stronger; in these same countries default is less likely. …
Persistent link: https://www.econbiz.de/10008466349
receive debt reduction via the enhanced HIPC initiative. This debt relief program is distinguished from previous ones by its … increase in social spending there could be a short-run increase in inflation in HIPC countries and (iii) the keys to long …
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