The role of lender behavior in international project finance

B-Tier
Journal: Economic Theory
Year: 2002
Volume: 19
Issue: 3
Pages: 571-598

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A sovereign borrower seeks to raise funds internationally to finance a fixed-size project, which no single lender can finance alone. Lenders cannot lend more than their endowments, which are private information. A coordination failure arises; therefore, some socially desirable projects may not be financed, even if ex post feasible. There are multiple equilibria, and a conflict exists between lenders about which equilibrium to coordinate on. When endowments are volatile, some lenders prefer an equilibrium in which the project is financed with probability $p

Technical Details

RePEc Handle
repec:spr:joecth:v:19:y:2002:i:3:p:571-598
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24