Eaton-Gersovitz Model As Special Case of Debt-Renegotiation Model
Consider the debt-renegotiation model of Section 13.11. Investigate analytically whether for \(\alpha=1\), the equilibrium dynamics collapse to those of the standard Eaton-Gersovitz model studied in Section 13.6.
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---
title: "Exercise 13.15"
subtitle: "Eaton-Gersovitz Model As Special Case of Debt-Renegotiation Model"
---
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## Problem
Consider the debt-renegotiation model of Section 13.11. Investigate analytically whether for $\alpha=1$, the equilibrium dynamics collapse to those of the standard Eaton-Gersovitz model studied in Section 13.6.
## Answer
_No solution has been posted yet. If you have a solution, we invite you to share it in the comment box at the bottom of this page._