Gottlieb, Daniel (1987): On the Determinants of a Country's Creditworthiness - The Case of Israel: 1971 to 1983. Published in: Journal of Economic Development , Vol. Volume, No. Number 1 (June 1989): pp. 65-91.
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This paper assesses an economy's default risk on its international debt by considering different approaches,prevalent in the literature. Unlike in multi-country studies,these data comprise reported loans to one economy only-This is useful since the country's macroeconomic development is the common factor in all observations.The study suggests that for Israeli data the traditional approach,stressing an economy's ability to repay the external debt,performed better than the more recent approach emphasizing the borrowing country's costs and benefits from default,reflecting Its willingness to repay debt.Policy considerations conclude the study.
|Item Type:||MPRA Paper|
|Institution:||International Monetary Fund|
|Original Title:||On the Determinants of a Country's Creditworthiness - The Case of Israel: 1971 to 1983|
|Keywords:||Country risk; Sovereign risk; creditworthiness; external debt; borrowing countries; Israel;|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and Regulation|
|Depositing User:||Daniel Gottlieb|
|Date Deposited:||09. May 2007|
|Last Modified:||13. Feb 2013 12:07|
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