; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Developing Country Borrowing and Domestic Wealth"; ; "batchuser@example.com"; "Rogoff, Kenneth S.", "Gertler, Mark"; "Federal Reserve Bank of Minneapolis"; "F43 - Economic Growth of Open Economies", "O11 - Macroeconomic Analyses of Economic Development"; "Across developing countries, capital market inefficiencies tend to decrease and external borrowing tends to sharply increase as national wealth rises. We construct a simple model of intertemporal trade under asymmetric information which provides a coherent explanation of both these phenomenon, without appealing to imperfect capital mobility. The model can be applied to a number of policy issues in LDC lending, including the debt overhang problem, and the impact of government guarantees of private debt to foreign creditors. In the two-country general equilibrium version of the model, an increase in wealth in the rich country can induce a decline in investment in the poor country via a \"siphoning effect\". Finally, we present some new empirical evidence regarding the link between LDC borrowing and per capita income."^^; "1989-06"; "2018-03-29T18:36:18.607851915+00:00"^^; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2019-07-19T15:57:24.156474058+00:00"^^; "https://creativecommons.org/licenses/by-nc/4.0/"; "Conference Proceeding"; "265", "664"; "International perspectives on debt, growth, and business cycles"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department."; ; "ConferenceProceeding" . ; .