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~institution:"International Monetary Fund (IMF)"
~institution:"National Bureau of Economic Research"
~person:"Chari, V.V."
~subject:"Theorie"
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Bankruptcy and a fresh start
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Bailouts, Time Inconsistency, and Optimal Regulation
Chari, V.V.
-
2013
We develop a model in which, in order to provide managerial incentives, it is optimal to have costly
bankruptcy
. If … states in which resources lost to
bankruptcy
in the equilibrium without a government are largest …
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