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Title: |
Hamiltonian Approaches to the Analysis of
External Debt |
| Author: |
Chae, Changhee |
| Author
Affiliation: |
U MN, Morris |
| Source: |
International Economic Journal, Winter 1987, v. 1, no. 4, pp. 19-33 |
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Publication Date: |
Winter 1987 |
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Abstract: |
This paper investigates the borrowing
aspect of LDC's debt problems from a short run and a borrower's
perspective, taking "Hamiltonian" approaches. In analyzing a dynamic
external debt problem, other studies have adopted a single-objective of
maximizing intertemporal utility. This paper explores the optimum rate
of external borrowing with different objectives and assumptions that may
be more realistic for the economic planners of the developing countries.
Altogether four cases are analyzed. The important finding is that even
though all four cases exhibit the so called "bang-bang" phenomena, all
four cases produce a different optimum rate of external borrowing with
different policy implications. |
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