The Timing of Multilateral Lending |
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| Authors: | William Perraudin,& Anne Sibert |
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| Affiliation: | Birkbeck College, University of London, Bank of England and CEPR,;Birkbeck College, University of London |
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| Abstract: | Bargaining over the terms of multilateral lending can be a prolonged process. We model failure to come to quick agreement as a screening device. Policy makers who find conditionality especially costly delay to signal their type. We show that increased costs to not reaching agreement, whether borne by borrowers or lenders, can increase the chances of delay. |
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