| Автор | Grossman, Herschel I. |
| Автор | Han, Taejoon |
| Дата выпуска | 1993 |
| dc.description | This paper analyses the financial and war‐spending policies of a state that faces a conflict in which defeat would result in the loss of sovereign power and in which the material consequences, conditional on avoiding defeat, are stochastic. The analysis takes explicit account of the historical experiences of lenders, who face debt repudiation if the state to whom they have lent is defeated and who also face partial default if the material consequences of the war are unfavorable for the debtor state, even if it avoids defeat. In this analysis, the state uses war debt to smooth expected consumption intertemporally in response to temporary war spending, and the state also uses contingent debt servicing to insure realized consumption against the risk associated with the material consequences of the war. An important innovation in the analysis is to treat the equilibrium amount of war spending, the state's resulting probability of avoiding defeat, as well as the equilibrium amount of borrowing as a set of endogenous variables to be determined simultaneously. |
| Формат | application.pdf |
| Издатель | Taylor & Francis Group |
| Копирайт | Copyright Taylor and Francis Group, LLC |
| Тема | War finance |
| Тема | debt repudiation |
| Тема | consumption smoothing |
| Тема | risk shifting |
| Название | A theory of war finance |
| Тип | research-article |
| DOI | 10.1080/10430719308404746 |
| Print ISSN | 1043-0717 |
| Журнал | Defence Economics |
| Том | 4 |
| Первая страница | 33 |
| Последняя страница | 44 |
| Аффилиация | Grossman, Herschel I.; Department of Economics, Brown University |
| Аффилиация | Han, Taejoon; Department of Economics, Brown University |
| Выпуск | 1 |
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| Библиографическая ссылка | Garber, Peter. Alexander Hamilton's market based debt reduction plan. Carnegie‐Rochester Conference Series on Public Policy. Vol. 35, pp.79–104. |
| Библиографическая ссылка | Grossman, Herschel. 1990. “The political economy of war debt and inflation”. In Monetary Policy for a Changing Financial Environment, Edited by: Haraf, William and Cagan, Phillip. 166–181. Washington: The AEI Press. |
| Библиографическая ссылка | Grossman, Herschel and Han, Taejoon. 1992. War finance, moral hazard, and the fall of the Confederacy unpublished manuscript |
| Библиографическая ссылка | Grossman, Herschel and Van Huyck, John. 1988. Sovereign debt as a contingent claim: excusable default, repudiation, and reputation,. American Economic Review, 78(5): 1088–1097. |
| Библиографическая ссылка | Hamilton, Alexander. 1795. “Second report on public credit. January 16, 1795”. In The Papers of Alexander Hamilton, Vol. 18, New York: Columbia University Press. |
| Библиографическая ссылка | Johnson, Elizabeth, ed. 1971. The Collected Writings of John Maynard Keynes, Activities, 1914–1919, Vol. 16, London: Macmillan. |
