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 …

by durables whereas unsecured debt can be discharged in bankruptcy procedures. We show that the model matches the main … exemptions in bankruptcy procedures have very small effects on the equilibrium. -- Household debt portfolios ; Durables … ; Collateral ; Income risk ; Bankruptcy …

This paper examines the role of geography and culture in explaining bankruptcy. We adopt survival analyses to model the … bankruptcy risk of a firm, allowing for time-varying covariates. Based on a large sample from all major sectors of the Swiss …-periphery approach, has a significant impact on its bankruptcy risk; (ii) Variables proxying for the cultural environment of a firm have …