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dc.titlePrivate External Overborrowing in Undistorted Economies: Market Failure and Optimal Policy
dc.contributor.authorFernández-Arias, Eduardo
dc.contributor.authorLombardo, Davide
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2011-02-07T00:00:00
dc.date.issue1998-03-01T00:00:00
dc.description.abstractAn 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.
dc.format.extent38
dc.identifier.doihttp://dx.doi.org/10.18235/0011568
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Private-External-Overborrowing-in-Undistorted-Economies-Market-Failure-and-Optimal-Policy.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFinancial Market
dc.subject.keywordsborrowing markets;WP-369;taxes;lending markets;capital flight
idb.identifier.pubnumberWorking Papers
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