Minetti, Raoul; Peng, Tao - In: Journal of Economic Dynamics and Control 37 (2013) 12, pp. 2397-2416
We investigate a small open economy with constraints in both the domestic and the international credit market. The informational opaqueness of the domestic market hinders foreign lenders' activity, so that entrepreneurs face looser borrowing constraints vis-à-vis domestic financiers. However,...