Arbeitspapier
Foreign debt and capital accumulátion
In an open economy, a country may borrow in order to accumulate capital. The paper compares the case of foreign borrowing with a scenario in which a country accumulates capital internally by postponing consumption. The impact of borrowing on the time profile of consumption and of debt is analyzed. The model also specifies the time profile of the balance of trade. The opportunity costs of borrowing are studied and conditions are specified in which it is worthwhile to borrow. In the context of the model, some phenomena are discussed that may make it more difficult for the debtor country to pay interest and repay debt and that may be an inducement to breach the credit contract.
- Language
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Englisch
- Bibliographic citation
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Series: Diskussionsbeiträge - Serie II ; No. 28
- Classification
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Wirtschaft
- Event
-
Geistige Schöpfung
- (who)
-
Siebert, Horst
- Event
-
Veröffentlichung
- (who)
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Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
- (where)
-
Konstanz
- (when)
-
1987
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Siebert, Horst
- Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
Time of origin
- 1987
Other Objects (12)
Foreign debt and capital accumulation
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Foreign debt and capital accumulation
Buch: Siebert, Horst: Bildungspraxis in Deutschland: Schule und Erwachsenenbildung der BRD und DDR im Vergleich, 1970
Germany's capital market and corporate governance
Foreign debt and capital accumulation
The half and the full debt cycle
The half and the full debt cycle
Optimal foreign borrowing: the impact of the planning horizon on the half and full debt cycle
Trade balances and capital mobility
Optimal foreign borrowing: Sensitivity analysis with respect to the planning horizon
Debt cycles with endogenous interest rate
Pay-as-you-go versus capital funded pension systems: the issues
Die silberne Schlange : Roman
Foreign debt and capital accumulation
Buch: Siebert, Horst: Bildungspraxis in Deutschland: Schule und Erwachsenenbildung der BRD und DDR im Vergleich, 1970
Germany's capital market and corporate governance
Foreign debt and capital accumulation
The half and the full debt cycle
The half and the full debt cycle
Optimal foreign borrowing: the impact of the planning horizon on the half and full debt cycle
Trade balances and capital mobility
Optimal foreign borrowing: Sensitivity analysis with respect to the planning horizon
Debt cycles with endogenous interest rate
Pay-as-you-go versus capital funded pension systems: the issues