International Monetary Fund
700 19th Street NW
Washington DC 20431
Institutional Affiliation: International Monetary Fund
Information about this author at RePEc
NBER Working Papers and Publications
|January 1994||Stabilization and Transition: Poland, 1990-91|
with Olivier Jean Blanchard
in The Transition in Eastern Europe, Volume 1, Olivier Jean Blanchard, Kenneth A. Froot, and Jeffrey D. Sachs, editors
|The Logistics of Privatization in Poland|
in The Transition in Eastern Europe, Volume 2: Restructuring, Olivier Blanchard, Kenneth Froot, Jeffrey Sachs, eds.
|June 1988||The Debt Crisis: Structural Explanations of Country Performance|
with Jeffrey Sachs: w2607
This paper develops a cross-country statistical model of debt rescheduling, and the secondary market valuation of LDC debt, which links these variables to key structural characteristics of developing countries, such as the trade regime, the degree of income inequality, and the share of agriculture in GNP Our most striking finding is that higher income inequality is a significant predictor of a-higher probability of debt rescheduling in a cross-section of middle-income countries. We attribute this correlation to various difficulties of political management in economies with extreme inequality. We also find that outward-orientation of the trade regime is a significant predictor of a reduced probability of debt rescheduling.
Published: Journal of Development Economics 29 1988, 271-306translation in Trimestre Economica Vol. LVI, July 1989, Mexico citation courtesy of