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Every year 400,000 entrepreneurs fail and 60,000 file for personal bankruptcy. The option to declare bankruptcy … insurance and credit conditions. A lenient bankruptcy law always worsens credit conditions, in particular for poor entrepreneurs …, we show that the optimal bankruptcy law is very harsh because the benefits from better credit conditions dominate the …
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During the last years more and more discussions came up about the contribution of technology-oriented and technology-intensive industries for the economic development and employment. One reason for these contradictory evaluations of technology-intensive industries can be attributed to different...
Persistent link: https://www.econbiz.de/10011620522
In this paper, we report results of an ongoing empirical analysis of firm dynamics in East Germany. After discussing specifics of a newly available data set with information on more than 100.000 firms, we analyze patterns of business starts and failures. Furthermore, we present preliminary...
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The determinants of transitions between different states of financial distress are analyzed using two versions of Markov chain models: a multinomial logit model without random effects and a multinomial logit model capturing such unobservable factors. The empirical analysis is based on a panel...
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