Abstract
Some economists argue that as long as governments can earn the market rate of return by saving abroad, standard reputation models cannot support debt. We argue that these standard reputation models are partial in the sense that actions of agents in one arena affect reputation in that arena only. We develop a general model of reputation in which if a government is viewed as untrustworthy in one relationship, this government will be viewed as untrustworthy in other relationships. We show that our general model of reputation can support large amounts of debt.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 55-70 |
| Number of pages | 16 |
| Journal | International Economic Review |
| Volume | 39 |
| Issue number | 1 |
| DOIs | |
| State | Published - Feb 1998 |
| Externally published | Yes |
Bibliographical note
Funding Information:obtained the mixture was allowed to stand at RT for 10 min. When TLC (n-hexane:EtOAc, 80:20) showed complete disappearance of anisole, 50 mL of sodium bisulfate (5%) was added to the brown solid. The reaction mixture was then extracted with ether (3 x 5 mL). The combined extracts were dried with MgSO,. Evaporation of the solvent afforded the iodo compound, which was purified by column chromatography on silica gel using a mixture of n-hexane:EtOAc (80:20) to give 11.5 g (98%) of colorless solid, mp. 50-53". 'H NMR: 6 7.35 (d, 2H), 6.45 (d, 2H), 3.85 (s, 3H). I T : 6 142.81, 136.25, 129.36, 126.65, 112.86, 68.70. MS: mlz, 234.22 (100%, M+), 108 (loo%), 77 (8%), 65 (65%). Anal. Calcd for C,H,IO: C, 35.90; H, 2.99. Found: C, 35.70; H, 3.2 4-Iodo-4-methoxybenzyl alcohol, colorless solid, mp. 142-144". 'HN MR: 6 6.9-7.4 (m, 3H), 4.5 (s, 2H), 3.6 (s, 3H). "C: 6 140.91, 137.32, 128.38, 126.95, 113.96, 94.37,64.70,55.06. MS: dz,2 64.42 (100% M+), 108 (loo%), 93 (60%),9 1(100%),7 7 (85%),6 5 (50%), 39 (25%). Anal. Calcd for C,H,IO,: C, 36.64; H, 3.4. Found: C, 36.71; H, 3.56 3-(3-iodo-4-aminophenyl)propionica cid, colorless solid, mp. 242-243". IH NMR: 6 10.2 (s, 1H ), 6.7-7.3 (m, 3H), 3.18 (s, 2H), 2.98 (t, 2H), 2.58 (t, 2H). I3C:6 179.61, 146.51, 140.19, 128.59, 126.41, 119.48, 33.68, 30.59. MS: mlz, 301.52 (loo%, M+), 289 (loo%), 150 (90%), 104(80%),9 3 (loo%), 77 (65%), 66 (30%),5 1 (25%),3 9 (15%). Anal. Calcd for C,H,,IN02: C, 35.88; H, 3.32; N, 4.65. Found: C, 35.69; H, 3.44; N, 4.58 Acknowledgements- We gratefully acknowledge the funding support received for this project from the Isfahan University of Technology (IUT), IR Iran (A. R. H.) and Grant GM 33138 (A. E. R.) from the National Institutes of Health. USA.