as well as the possibility of bankruptcy and default. A new equilibrium results, which we abbreviate GELBI (general … equilibrium with liquidity, bankruptcy and incomplete markets). When the supply of bank money and bankruptcy/default penalties are … is (almost) never neutral, it has positive value and its optimum quantity is often finite; bankruptcy and default not …

must provide default, bankruptcy and reorganization rules. These rules are usually denominated in terms of fiat and socio … with rules on the granting of credit and the bankruptcy, default and reorganization rules,in essence, provide lower and … of interest for loans combined with the harshness of the bankruptcy and reorganization laws help to determine the rate of …

Either lending must be secured or otherwise some form of default or bankruptcy rules are required to provide a …

A simple optimal garnishing rule to discourage strategic bankruptcy is derived. …

distribution. Using the continuum of traders model, we show existence and optimality for the case of no bankruptcy as well as for … the case in which there exists the potentiality of bankruptcy. Finally, we analyze the relationship of the gearing ratio … and the bankruptcy penalty with respect to the resulting equilibrium allocations. …