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A common assumption in standard economic models is that agents are risk-averse and prudent, and it is often argued that prudence is necessary to generate precautionary savings. This paper shows that prudence is not necessary to generate precautionary savings in small open economy models with...
Persistent link: https://www.econbiz.de/10009369438
The paper makes an assessment of the progress made in developing local debt markets in emerging Asia. Market development has been limited by hurdles confronting borrowers and lenders, current and potential liquidity providers, and insufficient support from government policies and regulations....
Persistent link: https://www.econbiz.de/10009151210
held back by a sharp fall in investment rates, which has left firms with little need for bond borrowing. Even so, markets …
Persistent link: https://www.econbiz.de/10009151213
Low-income countries continue to face significant challenges in meeting their vast development needs while maintaining a sustainable debt position, even after many of these countries have benefited from substantial debt relief. These challenges are further exacerbated by changes in the financial...
Persistent link: https://www.econbiz.de/10010790492
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lab experiment, participants can purchase goods by borrowing against their future income. We exogenously manipulate income … back their consumption after feedback. However, at the end of the experiment they remain with higher debt levels, which … and borrowing behavior in a representative survey (GSOEP-IS). …
Persistent link: https://www.econbiz.de/10012141858
that people with low self-control have more problems with the repayment of consumption debt, but this relationship is, in …
Persistent link: https://www.econbiz.de/10012504511