Baek, In-Mee; Bandopadhyaya, Arindam - In: Eastern Economic Journal 23 (1997) 4, pp. 441-450
This paper examines the additional lending decision of a creditor to a sovereign debtor in default. The analysis incorporates the prevalence of partial default and the amount of inherited debt in default. We show that an increase in additional lending, L, could increase the probability of...