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Business Conditions and Default Risks Across Countries

Pflüger, Michael - 2011

The risk of default that business firms face is very significant and differs widely across countries. This paper explores the links between countries' business conditions and international trade embedment and the default risk at the country level from a theoretical point of view. Our main...

Persistent link: https://www.econbiz.de/10013128748

Personal Bankruptcy Law, Wealth and Entrepreneurship : Theory and Evidence from the Introduction of a 'Fresh Start'

Fossen, Frank M. - 2011

A personal bankruptcy law that allows for a "fresh start" after bankruptcy reduces the individual risk involved in … entrepreneurial activity. On the other hand, as risk shifts to creditors who recover less of their credit after a debtor's bankruptcy … forgiving personal bankruptcy law are less relevant for wealthy potential entrepreneurs who still risk losing their wealth, but …

Persistent link: https://www.econbiz.de/10013130785

Business Cycle Effects of Credit and Technology Shocks in a DSGE Model with Firm Defaults

Pesaran, M. Hashem - 2011

This paper proposes a theoretical framework to analyze the impacts of credit and technology shocks on business cycle dynamics, where firms rely on banks and households for capital financing. Firms are identical ex ante but differ ex post due to different realizations of firm specific technology...

Persistent link: https://www.econbiz.de/10013119292

Surviving the Crisis : Foreign Multinationals vs Domestic Firms in Ireland

Godart, Olivier - 2011

Starting from the observation that all firms in Ireland (foreign and domestic in manufacturing and services industries) were hit by the crisis, the paper asks whether there is a difference in the behaviour of foreign and domestic firms. One hypothesis is that foreign multinationals are less...

Persistent link: https://www.econbiz.de/10013121748

Business, Bankruptcy, and Beliefs : The Financial Demise of NBA Stars

Henry, Ruby - 2013

outcomes of both entrepreneurial activity (investment effort) and bankruptcy. Without correcting for endogeneity it does appear … that starting businesses causes bankruptcy. After using charitable foundations as an instrument, however, the data confirms … effect of confidence on bankruptcy to be non-monotonic. Having some confidence decreases the probability of bankruptcy, but …

Persistent link: https://www.econbiz.de/10013085476

Asset Stripping, Rule of Law and Firm Survival : The Hoff-Stiglitz Model and Mass Privatization in Montenegro

Koman, Matjaz - 2013

We provide the first test of the Hoff and Stiglitz (2004) model predicting whether and under what conditions mass privatizations are accompanied by asset stripping. In addition to directly testing the theory, we also tackle an important policy-oriented issue of why a large number of efficient...

Persistent link: https://www.econbiz.de/10013071449

Trade Reforms and Market Selection : Evidence from Manufacturing Plants in Colombia

Eslava, Marcela - 2009

We use plant output and input prices to decompose the profit margin into four parts: productivity, demand shocks, mark-ups and input costs. We find that each of these market fundamentals are important in explaining plant exit. We then use variation across sectors in tariff changes after the...

Persistent link: https://www.econbiz.de/10013158514

Consumer Debt and Default : A Macro Perspective

Exler, Florian - 2020

providing an overview of consumer bankruptcy law in the US and document the relevant institutional changes over time. We proceed … implications of various bankruptcy laws? And second, what caused the rise in filings over time? We end with a discussion of open …

Persistent link: https://www.econbiz.de/10012841017

Changing the Structure of Minimum Wages : Firm Adjustment and Wage Spillovers

Giupponi, Giulia - 2018

This paper analyses the economic impact of a significant change to the structure of a minimum wage setting policy. The context is the United Kingdom where government mandated an unexpected change in the structure of minimum wages and their setting in 2016 by introducing a new minimum wage –...

Persistent link: https://www.econbiz.de/10012920444

Minimum Wage and Financially Distressed Firms : Another One Bites the Dust

Alexandre, Fernando - 2020

Since late 2014, Portuguese Governments adopted ambitious minimum wage policies. Using linked employer-employee data, we provide an econometric evaluation of the impact of those policies. Our estimates suggest that minimum wage increases reduced employment growth and profitability, in particular...

Persistent link: https://www.econbiz.de/10012827335