What is Different about International Lending?
解释国际债务合同如何实现强制执行：银行通过拒绝向违约者放贷并维护强硬声誉来约束借款人，银团贷款则加大违约惩罚，使借款人不愿主动违约。模型预测大额借款人利率更低，且每次违约后利率可能下降。
An attempt is made to explain how enforceability is achieved in international debt contracts. Each bank announces the policy of denying credit to borrowers who default and chooses to adhere to it to maintain its reputation of being a tough bank to discipline its other borrowers. Loans are made by syndicates of banks in order to make the penalty for default severe enough so borrowers would choose not to default voluntarily. The model predicts that the interest rate charged on loans is smaller for the larger borrowers. Also, for any given borrower, the interest rate may fall after each successive default.