International financial rescues and debtor-country moral hazard

Prasanna Gai and Ashley Taylor

Bank of England working papers from Bank of England

Abstract: In this paper the question of whether recent international policy initiatives to facilitate financial rescues in emerging market countries have influenced debtors' incentives to access official sector resources is examined. A country's systemic importance is highlighted as a key characteristic that drives access to official sector finance. The effect of these policy initiatives on IMF programme participation is estimated using a pooled probit model. The safety net implied by policy changes to permit exceptional access is shown to have a greater marginal impact on the use of official sector resources, the more systemically important the debtor country is. The paper's results can be interpreted as offering some support for the presence of debtor-country moral hazard.

Date: 2004-05
New Economics Papers: this item is included in nep-fin and nep-sea
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.bankofengland.co.uk/research/Documents/workingpapers/2004/WP217.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.bankofengland.co.uk/research/Documents/workingpapers/2004/WP217.pdf [301 Moved Permanently]--> https://www.bankofengland.co.uk/research/Documents/workingpapers/2004/WP217.pdf)

Related works:
Journal Article: International Financial Rescues and Debtor‐Country Moral Hazard (2004)
Working Paper: International financial rescues and debtor-country moral hazard (2004)
Working Paper: International financial rescues and debtor country moral hazard (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:217

Access Statistics for this paper

More papers in Bank of England working papers from Bank of England Bank of England, Threadneedle Street, London, EC2R 8AH. Contact information at EDIRC.
Bibliographic data for series maintained by Digital Media Team ().