TY - JOUR
AU - Thomas, Jonathan, P.
AB - Abstract A theoretical model is developed in which both buybacks and the adoption of an IMF programme can be used as screening devices which enable a creditor to discriminate between debtor countries which are willing to use debt relief in order to invest and repay and countries which are not. Asymmetric information is assumed. This problem can be solved if the country has sufficient resources to engage in a debt buyback and so gain the debt relief. When the country is credit constrained, an alternative screening mechanism is to undertake an IMF programme in return for debt reduction and possibly an IMF loan. This content is only available as a PDF. Author notes Financial support of the ESRC Global Economic Institutions initiative is gratefully acknowledged. We also want to thank participants at seminars at Warwick, Birkbeck College and Pisa. © Royal Economic Society 1999
TI - IMF Conditionality as a Screening Device
JO - The Economic Journal
DO - 10.1111/1468-0297.00420
DA - 1999-03-01
UR - https://www.deepdyve.com/lp/oxford-university-press/imf-conditionality-as-a-screening-device-uMTjJA1Ysh
SP - 111
EP - 125
VL - 109
IS - 454
DP - DeepDyve
ER -