"The authors study the effect of reorganization costs on the efficiency of bankruptcy laws. They develop a simple model … that predicts that in a regime with high costs, the law fails to achieve the efficient outcome of liquidating unviable … lowering reorganization costs, the reform improved the selection of viable firms into reorganization. In this sense, the new …

use rough heuristics to assess the applicability of this hypothesis to Central America. They do so by using a simple rule …

government procurement costs. In addition, high technical requirements are likely to be imposed for these large-scale projects …, which will in turn add extra costs for the better quality of works and further limit bidder participation. The evidence …