The delayed recovery of the debt-servicing capacity of the debtor countries was no longer ascribed to the global recession of the early 1980s, but to the ‘structural’ problems of the debtor countries. This now required greater World Bank involvement, ‘structural adjustment’ lending, and longer-term debt rescheduling. However, economic recovery resisted these efforts too.
Patrick Rey
Principal-agent models take outside options, determining participation and incentive constraints, as given.
- 07/24/2024
- Working Paper