Showing 1 - 10 of 64
What difference does it make, and for whom, whether the nonperforming debts of emerging market borrowers are restructured? This paper begins by positing a set of counterfactual conditions under which restructuring would not matter, and then shows how several ways in which the actual world of...
Persistent link: https://www.econbiz.de/10012471039
territoriality' -- in which assets are adjudicated by the jurisdiction in which they are located at the time of the bankruptcy …
Persistent link: https://www.econbiz.de/10012471197
Recent financial crises in emerging markets have been followed by temporary but substantial losses in output. This paper explores the possibility that threats of such losses are the dominant incentive for repayment of international debt. In this environment private debtors and creditors have...
Persistent link: https://www.econbiz.de/10012471243
One of the productive activities engaging the work force is reorganizing. When factors of production are better matched, productivity is higher. The probabilistic matching model of Diamond, Mortensen, and others provides a way to make the idea of reorganization precise. Because the flow of...
Persistent link: https://www.econbiz.de/10012471607
This paper analyzes the "debt crisis" of the 1930s to see what light this historical experience sheds on recent difficulties in international capital markets. We first consider patterns of overseas lending and borrowing in the 1920s and 1930s, comparing the performance of standard models of...
Persistent link: https://www.econbiz.de/10012477304
History suggests the following stylized facts about default on sovereign debt:(1) Defaults are associated with identifiably bad states of the world. (2) Defaults are usually partial, rather than complete.(3) Sovereign states usually are able to borrow again soon after a default. Motivated by...
Persistent link: https://www.econbiz.de/10012477407
rich menu of tax rates and explicitly incorporates bankruptcy and default. The firm's multi-period optimization problem is …
Persistent link: https://www.econbiz.de/10012478005
This paper presents a theoretical model to describe the effects of default risk on international lending to LDC sovereign borrowers. The threat of defaults in international lending is shown to give rise to many characteristics of the syndicated loan market: (1) quantity rationing of loans; (2)...
Persistent link: https://www.econbiz.de/10012478182
We ask why so few student loan borrowers enroll in Income Driven Repayment when the majority would benefit from doing so. To do so we run an incentivized laboratory experiment using a facsimile of the government's Student Loan Exit Counseling website. We test the role information complexity,...
Persistent link: https://www.econbiz.de/10012480909
bankruptcy procedures for doing this fail to internalise the price effects of asset 'fire-sales' to pay down debts, however. We …
Persistent link: https://www.econbiz.de/10012462797