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Bankruptcy choice with endogenous financial constraints

Tamayo, Cesar E. - 2017

monitoring is too costly, renegotiation leads to reorganization, which resembles actual bankruptcy practice. We calibrate the …-trivial choice between alternative bankruptcy procedures. Given limited commitment and asymmetric information, financial contracts … specify default, renegotiation and reorganization policies. Renegotiation entails a redistribution of social surplus, while …

Persistent link: https://www.econbiz.de/10011673284

Consumption in the Great Recession : the financial distress channel

Athreya, Kartik B.; Mather, Ryan; Mustre-del-Río, José; … - 2019

During the Great Recession, the collapse of consumption across the U.S. varied greatly but systematically with house-price declines. We find that financial distress among U.S. households amplified the sensitivity of consumption to house-price shocks. We uncover two essential facts: (1) the...

Persistent link: https://www.econbiz.de/10012137091

On the optimal design of a Financial Stability Fund

Ábrahám, Árpád; Cárceles-Poveda, Eva; Liu, Yan; … - 2016 - Preliminary and incomplete draft

Persistent link: https://www.econbiz.de/10011551510

From debt collection to relief provision : 60 years of official debt restructurings through the Paris Club

Cheng, Gong; Díaz Cassou, Javier; Erce, Aitor - 2017

Despite the frequency of official debt restructurings, little systematic evidence has been produced on their characteristics and implications. Using a dataset covering more than 400 Paris Club agreements, this paper aims to fill that gap. It provides a comprehensive description of the evolving...

Persistent link: https://www.econbiz.de/10011581662

Sovereign debt restructurings

Dvorkin, Maximiliano A.; Sanchez, Juan M.; Sapriza, Horacio - 2018

Sovereign debt crises involve debt restructurings characterized by a mix of face-value haircuts and maturity extensions. The prevalence of maturity extensions has been hard to reconcile with economic theory. We develop a model of endogenous debt restructuring that captures key facts of sovereign...

Persistent link: https://www.econbiz.de/10011911551

Deconstructing delays in sovereign debt restructuring

Benjamin, David; Wright, Mark L. J. - 2018

Persistent link: https://www.econbiz.de/10011936225

Policy interventions in sovereign debt restructurings

Dvorkin, Maximiliano A.; Sanchez, Juan M.; Sapriza, Horacio - 2019

The wave of sovereign defaults in the early 1980s and the string of debt crises in the decades that followed have fostered proposals involving policy interventions in sovereign debt restructurings. A key question about these proposals that has proved hard to handle is how they in influence the...

Persistent link: https://www.econbiz.de/10012139015

Debt reduction in Latin America and the Caribbean

Panizza, Ugo; Powell, Andrew - 2023

During the pandemic, public debt in Latin America and the Caribbean rose to more than 70 percent of GDP, and countries are now attempting to lower debt ratios. We analyze past debt reduction episodes and find inflation and the real interest rate were the most frequent main drivers, while higher...

Persistent link: https://www.econbiz.de/10014540585

Sovereign debt restructuring and credit recovery

Gutkowski, Violeta A. - 2024

Persistent link: https://www.econbiz.de/10015069793

Can asset reconstruction companies (ARCs) be part solution to the Indian debt problem?

Bhagwati, Jaimini; Khan, M. Shuheb; Bogathi, … - 2017

The Indian debt overhang issue is one of the major reasons that fresh investments are currently not being made in the scale required to promote higher growth and boost employment. Among banks the public sector banks (PSBs) are burdened with the bulk of net non-performing loans (NNPAs). These...

Persistent link: https://www.econbiz.de/10011638458