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dc.contributor.authorNissanke, Machikoen_US
dc.contributor.authorFerrarini, Bennoen_US
dc.date.accessioned2011-12-14T09:43:17Z-
dc.date.available2011-12-14T09:43:17Z-
dc.date.issued2001en_US
dc.identifier.isbn9291901032en_US
dc.identifier.urihttp://hdl.handle.net/10419/52900-
dc.description.abstractThe objective of this paper is to examine debt dynamics of highly indebted poor countries (HIPCs) and identify key factors responsible for their protracted debt crisis. For this purpose, we first evaluate economic conditions of debt sustainability in the context of the intertemporal borrowing model, the growth-cum-debt model and the gap models. After reviewing other concepts of debt dynamics, such as liquidity problem and insolvency condition, we analyse mechanisms whereby a debt burden becomes unsustainable and debt forgiveness is a rationale choice for both creditors and debtors to overcome the ensued debt overhang condition. In the light of these theoretical expositions, we present empirical evidence as to how debt dynamics has evolved over the last two decades in selected HIPCs and question the effectiveness of ex post debt relief facilities applied so far. In the concluding section, we present our proposal to use a state-contingent debt contract as an ex ante debt relief mechanism, as opposed to the current ex post debt relief embedded in the HIPC initiative, which we view as an ineffective mechanism for debt-crisis prevention and management.en_US
dc.language.isoengen_US
dc.publisherUNU-WIDER Helsinkien_US
dc.relation.ispartofseriesWIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2001/139en_US
dc.subject.jelF34en_US
dc.subject.jelF35en_US
dc.subject.jelO11en_US
dc.subject.jelO19en_US
dc.subject.ddc330en_US
dc.subject.keywordsovereign debt managementen_US
dc.subject.keywordexternal debten_US
dc.subject.keywordforeign aiden_US
dc.subject.keywordgrowth modelsen_US
dc.subject.keywordeconomic developmenten_US
dc.subject.stwAuslandsverschuldungen_US
dc.subject.stwDebt Managementen_US
dc.subject.stwEntwicklungsländeren_US
dc.titleDebt dynamics and contingency financing: Theoretical reappraisal of the HIPC initiativeen_US
dc.typeWorking Paperen_US
dc.identifier.ppn339058579en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:WIDER Discussion Papers, United Nations University (UNU)

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