Müller, Andreas; Storesletten, Kjetil; Zilibotti, Fabrizio - C.E.P.R. Discussion Papers - 2015
allocation. The equilibrium features increasing debt, falling consumption, and a non-monotone reform effort during the recession …. In contrast, the constrained optimum yields step-wise increasing consumption and step-wise decreasing reform effort … assistance program enforced by an international institution that monitors the reform effort. The terms of the program are …