Publication:
To Give or to Forgive? Aid versus Debt Relief

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dc.contributor.authorCordella, Tito
dc.contributor.authorMissale, Alessandro
dc.date.accessioned2012-03-19T18:05:47Z
dc.date.available2012-03-19T18:05:47Z
dc.date.issued2011-10-01
dc.description.abstractIs generalized debt relief an effective development strategy, or should assistance be tailored to countries' characteristics? To answer this question, the authors build a simple model in which recipient governments reveal their creditworthiness if donors offer them to choose between aid and debt relief. Since offering such a menu is costly, it is preferred by donors only when the cost of assistance is low, and the probability that an indebted country is creditworthy is high enough. For lower probabilities and higher costs of assistance, donors prefer a policy of only debt relief. Very limited aid is the preferred policy only for high costs of assistance, and low probabilities that the government is creditworthy.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111026084243
dc.identifier.doi10.1596/1813-9450-5859
dc.identifier.urihttps://hdl.handle.net/10986/3625
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5859
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABSORPTIVE CAPACITY
dc.subjectACCOUNTING
dc.subjectALLOCATION OF CREDIT
dc.subjectAMOUNT OF CREDIT
dc.subjectAMOUNT OF DEBT
dc.subjectAMOUNT OF LOANS
dc.subjectARREARS
dc.subjectASYMMETRIC INFORMATION
dc.subjectAVERAGE DEBT
dc.subjectBANK CREDIT
dc.subjectBANK FOR INTERNATIONAL SETTLEMENTS
dc.subjectBANK POLICY
dc.subjectBOND MARKETS
dc.subjectBOND YIELD
dc.subjectBONDS
dc.subjectBORROWING CAPACITY
dc.subjectBORROWING COSTS
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCASE OF DEFAULT
dc.subjectCLAIM
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMERCIAL DEBT
dc.subjectCOST OF DEBT
dc.subjectCREDIT CONSTRAINT
dc.subjectCREDIT HISTORY
dc.subjectCREDITOR
dc.subjectCREDITORS
dc.subjectCREDITWORTHINESS
dc.subjectCREDITWORTHY BORROWER
dc.subjectCURRENCY
dc.subjectCURRENT COSTS
dc.subjectDEBT
dc.subjectDEBT CRISIS
dc.subjectDEBT FORGIVENESS
dc.subjectDEBT LEVELS
dc.subjectDEBT OBLIGATIONS
dc.subjectDEBT OVERHANG
dc.subjectDEBT RATIOS
dc.subjectDEBT REDUCTION
dc.subjectDEBT RELIEF
dc.subjectDEBT RELIEF INITIATIVE
dc.subjectDEBT RELIEF INITIATIVES
dc.subjectDEBT SERVICE
dc.subjectDEBT SERVICE PAYMENTS
dc.subjectDEBT SUSTAINABILITY
dc.subjectDEBT-RELIEF
dc.subjectDEBTOR
dc.subjectDEBTOR COUNTRIES
dc.subjectDEBTOR GOVERNMENT
dc.subjectDEBTORS
dc.subjectDEBTS
dc.subjectDEFAULT COSTS
dc.subjectDEFAULT RISK
dc.subjectDEFAULTERS
dc.subjectDEFAULTS
dc.subjectDEMAND FOR CREDIT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDISBURSEMENTS
dc.subjectDISCOUNT RATES
dc.subjectDOLLAR BONDS
dc.subjectDOMESTIC DEBT
dc.subjectECONOMIC ACTIVITY
dc.subjectEQUALITY
dc.subjectEUROBOND
dc.subjectEXPENDITURE
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL RESOURCES
dc.subjectFINANCIAL MARKETS
dc.subjectFOREIGN AID
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN CLAIMS
dc.subjectFOREIGN CURRENCIES
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFUNGIBLE
dc.subjectFUTURE DEBT
dc.subjectGLOBAL BOND
dc.subjectGLOBAL DEVELOPMENT FINANCE
dc.subjectHIGH DEBTS
dc.subjectHIGH INTEREST RATES
dc.subjectHIGHLY INDEBTED COUNTRIES
dc.subjectIMPACT OF DEBT
dc.subjectINDEBTED
dc.subjectINDEBTED COUNTRIES
dc.subjectINDEBTED COUNTRY
dc.subjectINDEBTED POOR COUNTRIES
dc.subjectINDEBTEDNESS
dc.subjectINSTITUTIONAL REFORM
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL LENDING
dc.subjectINTERNATIONAL SETTLEMENT
dc.subjectINTERNATIONAL SETTLEMENTS
dc.subjectINVESTING
dc.subjectINVESTMENT CHOICES
dc.subjectINVESTMENT DECISION
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT PROJECTS
dc.subjectLACK OF CAPITAL
dc.subjectLENDERS
dc.subjectLOAN
dc.subjectLOAN VOLUMES
dc.subjectLONDON CLUB
dc.subjectLONG-TERM BORROWING
dc.subjectLONG-TERM LOANS
dc.subjectMARKET ACCESS
dc.subjectMARKET VALUE
dc.subjectMATURITY
dc.subjectMONETARY FUND
dc.subjectMORAL HAZARD
dc.subjectMULTILATERAL DEBT
dc.subjectMULTILATERAL DEBT RELIEF
dc.subjectMULTINATIONAL
dc.subjectNEW CREDIT
dc.subjectOLD CREDITORS
dc.subjectOLD DEBT
dc.subjectOUTPUT LOSS
dc.subjectOUTSTANDING DEBT
dc.subjectPAST DEBT
dc.subjectPOLITICAL ECONOMY
dc.subjectPOOL OF BORROWERS
dc.subjectPRESENT VALUE
dc.subjectPRESENT VALUE OF DEBT
dc.subjectPRIVATE BORROWING
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE CAPITAL INFLOWS
dc.subjectPRIVATE CREDIT
dc.subjectPRIVATE CREDITORS
dc.subjectPRIVATE DEBT
dc.subjectPRIVATE FUNDS
dc.subjectPRIVATE LENDERS
dc.subjectPRIVATE LENDING
dc.subjectPRIVATE LOANS
dc.subjectPRODUCTIVE INVESTMENT
dc.subjectPUBLIC CREDIT
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC INVESTMENT
dc.subjectRECIPIENT COUNTRIES
dc.subjectRECIPIENT COUNTRY
dc.subjectRECOVERY RATE
dc.subjectREMAINING DEBT
dc.subjectRENEGOTIATION
dc.subjectREPAYMENT
dc.subjectRETURN
dc.subjectRETURN ON INVESTMENT
dc.subjectRETURNS
dc.subjectRISK NEUTRAL
dc.subjectRISK-FREE RATE
dc.subjectSAVINGS
dc.subjectSERIAL DEFAULTERS
dc.subjectSTOCK OF DEBT
dc.subjectSUBSIDIARIES
dc.subjectTHIRD WORLD DEBT
dc.subjectTREASURIES
dc.subjectTREASURY
dc.subjectTREASURY BILLS
dc.subjectVALUE OF DEBT
dc.subjectYIELD SPREAD
dc.subjectYIELD SPREADS
dc.titleTo Give or to Forgive? Aid versus Debt Reliefen
dspace.entity.typePublication
okr.crossref.titleTo Give or to Forgive? Aid versus Debt Relief
okr.date.disclosure2011-10-01
okr.date.doiregistration2025-04-10T11:08:30.439934Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111026084243
okr.guid325801468153853577
okr.identifier.doi10.1596/1813-9450-5859
okr.identifier.externaldocumentum000158349_20111026084243
okr.identifier.internaldocumentum15366343
okr.identifier.reportWPS5859
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/10/26/000158349_20111026084243/Rendered/PDF/WPS5859.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.relation.associatedurlhttps://openknowledge.worldbank.org/handle/10986/16361
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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