value of assets. The costs vary from 14.7% for bond renegotiations to 30.5% for bankruptcies, and are substantially higher …

the cost of ex-post inefficiency when there are adverse aggregate shocks to the fundamental quality of collateral … shocks by engaging in collateral liquidations. Financial arbitrage by less leveraged financial intermediaries equilibrates … returns from acquiring collateral at fire-sale prices and returns from real-sector lending, inducing higher lending rates, a …

For nearly two years, the two of us have had a running discussion of the costs and benefits of automatic stays in …, particularly since the 2008 crisis. After some background on QFCs and automatic stays, we provide our joint analysis of the costs …

the personal costs associated with entrepreneurial failure. Insolvency regime reform can not only address the … much scope to improve the design of insolvency regimes in order to reduce the barriers to restructuring of weak firms and … markets. As the zombie firm problem may partly stem from bank forbearance, complementary reforms to insolvency regimes are …

This paper explores the link between the design of insolvency regimes across countries and laggard firms’ multi …-factor productivity (MFP) growth, using new OECD indicators of the design of insolvency regimes. Firm-level analysis shows that reforms to … insolvency regimes that lower barriers to corporate restructuring are associated with higher MFP growth of laggard firms. These …