A debt overhang model for low-income countries

Junko Koeda*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)


This paper presents a theoretical model to explain how debt overhang is generated in low-income countries and discusses its implications for aid design and debt relief. It finds that the extent of debt overhang and the effectiveness of debt relief depend on a recipient country's initial economic conditions and level of total factor productivity.

Original languageEnglish
Pages (from-to)654-678
Number of pages25
JournalIMF Staff Papers
Issue number4
Publication statusPublished - 2008 Dec
Externally publishedYes

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics


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