Stein, Jerome L.; Paladino, Giovanna - 2001
We provide benchmarks to evaluate what is an optimal foreign debt and a maximal foreign debt (debt-max), when risk is … the question of how one should measure vulnerability to shocks, when there is uncertainty concerning the productivity of … capital. We consider two sets of high- risk countries during the period 1978-99: a subset of 21 countries that defaulted on …
