Private External Overborrowing in Undistorted Economies : Market Failure and Optimal Policy

An undistorted free market economy endowed with perfectly rational and informed agents overborrows, i.e., borrows beyond the efficient level, because of the agents' failure to internalize credit rationing resulting from sovereign risk. It follows that the elimination of the market overborrowing will not cure private overborrowing. This paper explores the possibilities of economic policy as a remedy to the problem

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Year of publication:	2011
Authors:	Fernández Arias, Eduardo ; Lombardo, Davide
Publisher:	[S.l.] : SSRN
Subject:	Marktversagen \| Market failure \| Theorie \| Theory \| Privatwirtschaft \| Private sector \| Kleine offene Volkswirtschaft \| Small open economy \| Internationaler Kredit \| International credit
Description of contents:	Abstract [papers.ssrn.com]

Extent:	1 Online-Ressource
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 1998 erstellt Volltext nicht verfügbar
Classification:	F34 - International Lending and Debt Problems ; G15 - International Financial Markets ; E44 - Financial Markets and the Macroeconomy ; O16 - Financial Markets; Saving and Capital Investment
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014150226