DSAs are not only technical analyses – they are based also on assumptions that are essentially political – but may also affect the outcomes of debt negotiations. The study of the institutional and political frameworks under which DSAs are performed has been largely overlooked by the literature. This paper analyses the practice of DSAs, with a focus on the frameworks in which it occurs, the implications of the choices of assumptions, and the consequences for debt negotiations.
Patrick Rey
Principal-agent models take outside options, determining participation and incentive constraints, as given.
- 07/24/2024
- Working Paper