Debt Forgiveness: The Case for Hyper-Incentive Contracts.
We review two proposals for debt forgiveness; the Highly Indebted Poor Country Initiative (HIPC) and the Jubilee 2000 Coalition Initiative (J2K). We then consider the workhorse model of debt forgiveness (Krugman 1988). We show that the workhorse model solution is a sub-optimal contract, where the in...
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| Format: | Working paper |
| Language: | English |
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Department of Economics (University of Oxford)
2000
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