Affordable Access

International Lending and Borrowing in a Stochastic Sequence Equilibrium

  • Mathematics


The objective of this paper is to study international lending and borrowing in general equilibrium framework in which countries are subject to stochastic productivity fluctuations. The role of time preference, borrowing limits, and lump sum taxation are rigorously analyzed, yielding results which enrich those obtained in the existing literature.

There are no comments yet on this publication. Be the first to share your thoughts.