Analyzing structural change in the secondary market for developing-country debt: a translog approach
This paper examines changes in the relative price relationships between Latin American external debt instruments with the use of a translogarithmic utility function. An examination of price and external debt data for five heavily indebted Latin American countries over the period January 1986 to Dec...
| Main Authors: | , |
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| Format: | Article |
| Language: | Portuguese |
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Universidade de São Paulo
1998-02-01
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| Series: | Economia Aplicada |
| Subjects: | |
| Online Access: | https://www.revistas.usp.br/ecoa/article/view/217748 |
| _version_ | 1827782669021216768 |
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| author | Thomas J. Webster Michael Szenberg |
| author_facet | Thomas J. Webster Michael Szenberg |
| author_sort | Thomas J. Webster |
| collection | DOAJ |
| description |
This paper examines changes in the relative price relationships between Latin American external debt instruments with the use of a translogarithmic utility function. An examination of price and external debt data for five heavily indebted Latin American countries over the period January 1986 to December 1993 suggests that the Brady Plan probably affected the portfolio diversification decisions ofinvestors in developing-country externaldebt instruments by accelerating the return of Argentina, Brazil, Mexico and Venezuela to international credit worthiness. This study found that as a result of improved credit ratings and the resulting structural change in the secondary market for developing country debt, the external-debt instruments offour offive Latin American debtor countries examined in this study tended to become more substitutable with each other when held in a weakly separable portfolio.
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| first_indexed | 2024-03-11T15:36:18Z |
| format | Article |
| id | doaj.art-8ad954e1cd4d44a28551935c4c2f7107 |
| institution | Directory Open Access Journal |
| issn | 1413-8050 1980-5330 |
| language | Portuguese |
| last_indexed | 2024-03-11T15:36:18Z |
| publishDate | 1998-02-01 |
| publisher | Universidade de São Paulo |
| record_format | Article |
| series | Economia Aplicada |
| spelling | doaj.art-8ad954e1cd4d44a28551935c4c2f71072023-10-26T16:09:29ZporUniversidade de São PauloEconomia Aplicada1413-80501980-53301998-02-0121Analyzing structural change in the secondary market for developing-country debt: a translog approachThomas J. Webster0Michael Szenberg1Pace University. Lubin SchoolPace University. Lubin School This paper examines changes in the relative price relationships between Latin American external debt instruments with the use of a translogarithmic utility function. An examination of price and external debt data for five heavily indebted Latin American countries over the period January 1986 to December 1993 suggests that the Brady Plan probably affected the portfolio diversification decisions ofinvestors in developing-country externaldebt instruments by accelerating the return of Argentina, Brazil, Mexico and Venezuela to international credit worthiness. This study found that as a result of improved credit ratings and the resulting structural change in the secondary market for developing country debt, the external-debt instruments offour offive Latin American debtor countries examined in this study tended to become more substitutable with each other when held in a weakly separable portfolio. https://www.revistas.usp.br/ecoa/article/view/217748debtdeveloping-countrytranslogsecondary-market |
| spellingShingle | Thomas J. Webster Michael Szenberg Analyzing structural change in the secondary market for developing-country debt: a translog approach Economia Aplicada debt developing-country translog secondary-market |
| title | Analyzing structural change in the secondary market for developing-country debt: a translog approach |
| title_full | Analyzing structural change in the secondary market for developing-country debt: a translog approach |
| title_fullStr | Analyzing structural change in the secondary market for developing-country debt: a translog approach |
| title_full_unstemmed | Analyzing structural change in the secondary market for developing-country debt: a translog approach |
| title_short | Analyzing structural change in the secondary market for developing-country debt: a translog approach |
| title_sort | analyzing structural change in the secondary market for developing country debt a translog approach |
| topic | debt developing-country translog secondary-market |
| url | https://www.revistas.usp.br/ecoa/article/view/217748 |
| work_keys_str_mv | AT thomasjwebster analyzingstructuralchangeinthesecondarymarketfordevelopingcountrydebtatranslogapproach AT michaelszenberg analyzingstructuralchangeinthesecondarymarketfordevelopingcountrydebtatranslogapproach |