Optimal financial contracting and debt maturity structure under adverse selection
Estudios Económicos, 2002, vol. 17, issue 1, 37-65
We analyze a model in which a risk-averse country finances its development project under asymmetric information. Before the project renders its fruits, two types of news will become available, one of which will reduce the asymmetry of information between the country and its investors. We characterize the optimal financial contract both when complete financial contracting is possible and when the country is restricted to using only short-term and long-term debt.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:emx:esteco:v:17:y:2002:i:1:p:37-65
Access Statistics for this article
More articles in Estudios Económicos from El Colegio de México, Centro de Estudios Económicos Contact information at EDIRC.
Bibliographic data for series maintained by Rocío Contreras ().