Growth and External Debt Under Risk of Debt Repudiation

We analyze the pattern of growth of a nation which borrows abroad and which has the option of repudiating its foreign debt. We show that the equilibrium strategy of competitive lenders is to make the growth of the foreign debt contingent on the growth of the borrowing country. We give a closed-form solution to a linear version of our model. The economy, in that case, follows a two-stage pattern of growth. During the first stage, the debt grows more rapidly than the economy. During the second stage, both the debt and the economy grow at the same rate, and more slowly than in the first stage. During this second stage, the total interest falling due on the debt is never entirely repaid; only an amount proportional to the difference of the rate of interest and the rate of growth of the economy is repaid each period.

LDC Borrowing with Default Risk

This paper presents a theoretical model to describe the effects of default risk on international lending to LDC sovereign borrowers. The threat of defaults in international lending is shown to give rise to many characteristics of the syndicated loan market: (1) quantity rationing of loans; (2) LDC policies designed to enhance creditworthiness; (3) prevalence of short maturities on international loans; and (4) a prevalence of bank lending relative to bond-market lending

Privacy Risks in Digital Markets: The Impact of Ambiguity Attitudes on Transparency Choices

Transparency is viewed as an essential prerequisite for consumers to make informed privacy decisions in digital markets. However, it remains an open research question whether and when individuals actually prefer transparency about privacy risks when given a chance to avoid it. We investigate this question with a randomized controlled online experiment based on an Ellsberg-type design, where subjects repeatedly choose between risk and ambiguity while facing the threat of an actual disclosure of their personal data. We find empirical support for ambiguity attitudes as a novel behavioral mechanism underlying people\u27s transparency choices in privacy contexts. In particular, we find that most individuals avoid ambiguity and prefer transparency for low likelihood privacy losses. However, this pattern reverses for high likelihood losses and when subjects perceive data disclosure as a gain. Most notably, a significant share of people seek ambiguity and thus prefer to avoid transparency when facing high likelihood privacy risks

LDC Borrowing with Default Risk

This paper presents a theoretical model to describe the effects of default risk on international lending to LDC sovereign borrowers. The threat of defaults in international lending is shown to give rise to many characteristics of the syndicated loan market: (1) quantity rationing of loans; (2) LDC policies designed to enhance creditworthiness; (3) prevalence of short maturities on international loans; and (4) a prevalence of bank lending relative to bond-market lending

Growth and External Debt Under Risk of Debt Repudiation

We analyze the pattern of growth of a nation which borrows abroad and which has the option of repudiating its foreign debt. We show that the equilibrium strategy of competitive lenders is to make the growth of the foreign debt contingent on the growth of the borrowing country. We give a closed-form solution to a linear version of our model. The economy, in that case, follows a two-stage pattern of growth. During the first stage, the debt grows more rapidly than the economy. During the second stage, both the debt and the economy grow at the same rate, and more slowly than in the first stage. During this second stage, the total interest falling due on the debt is never entirely repaid; only an amount proportional to the difference of the rate of interest and the rate of growth of the economy is repaid each period

Historical significance and taxonomic status of Ischyrodon meriani (Pliosauridae) from the Middle Jurassic of Switzerland

Ischyrodon meriani is an obscure pliosaurid taxon established upon an exceptionally large tooth crown of a probable Callovian (Middle Jurassic) age that originates from Wölflinswil, Canton of Aargau, Switzerland. Despite being known for almost two centuries, the specimen remains poorly researched. Historically, I. meriani has been associated, or even considered conspecific, with Pliosaurus macromerus and Liopleurodon ferox. However, neither of the two hypotheses have been tested through detailed comparisons or using modern quantitative methods. Here, we redescribe the type of Ischyrodon meriani, illustrate it, and compare to teeth of thalassophonean pliosaurids, with special focus on Jurassic representatives of the clade. Multivariate analyses show close similarities to L. ferox but comparable structures to those of I. meriani, including a distinctive pattern of the apicobasal ridges, are also observable in some mid-Cretaceous brachauchenines from the ‘Polyptychodon’ assemblage of East and South East England. While it is likely that I. meriani represents a Liopleurodon-like taxon, or is indeed conspecific with L. ferox, which would make I. meriani the proper name for the species, any such taxonomic considerations are hindered by the fragmentary nature of the type specimens of both these taxa as well as limited knowledge of the dental variability within and between individual jaws of L. ferox. Currently, I. meriani is best treated as a nomen dubium. Finally, we discuss the potential implications of I. meriani being conspecific with L. ferox, and additionally provide a commentary on the taxonomic status of Liopleurodon