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A Gravity Model of Sovereign Lending: Trade, Default and Credit / Andrew K. Rose, Mark M. Spiegel.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Rose, Andrew K.
Contributor:
National Bureau of Economic Research.
Spiegel, Mark M.
Series:
Working Paper Series (National Bureau of Economic Research) no. w9285.
NBER working paper series no. w9285
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
A Gravity Model of Sovereign Lending
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2002.
Summary:
One reason why countries service their external debts is the fear that default might lead to shrinkage of international trade. If so, then creditors should systematically lend more to countries with which they share closer trade links. We develop a simple theoretical model to capture this intuition, then test and corroborate this idea.
Notes:
Print version record
October 2002.

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