Multiple international debt equilibria and irreversibility

M A Roberts, W D McCausland

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

A non-linear model is presented to give a global analysis of international debt and trade. It offers an alternative to the sunk-cost explanation of hysteresis, structural breaks and irreversibility. In particular, we show that a natural resource discovery, which turns out to be temporary ex post, may cause a long-term deterioration in the trade balance. (C) 1999 Elsevier Science B.V. All rights reserved. JEL classifications: F32; F40.

Original languageEnglish
Pages (from-to)179-188
Number of pages10
JournalEconomic Modelling
Volume16
Publication statusPublished - 1999

Keywords

  • international debt
  • hysteresis
  • irreversibility
  • EXCHANGE-RATE
  • EXPECTATIONS
  • HYSTERESIS
  • MODELS

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