On the Determinants of a Country's Creditworthiness - The Case of Israel: 1971 to 1983
This paper assesses an economy's default risk on its international debt by considering different approaches,prevalent in the literature. Unlike in multi-country studies,these data comprise reported loans to one economy only-This is useful since the country's macroeconomic development is the common factor in all observations.The study suggests that for Israeli data the traditional approach,stressing an economy's ability to repay the external debt,performed better than the more recent approach emphasizing the borrowing country's costs and benefits from default,reflecting Its willingness to repay debt.Policy considerations conclude the study.
|Date of creation:||04 Dec 1987|
|Date of revision:|
|Publication status:||Published in Journal of Economic Development Number 1.Volume(1989): pp. 65-91|
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