Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is … externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability …

as forced liquidation. Firms under limited liability are characterized by higher growth and higher insolvency rates than … details of liability regulation and taxation rules which German entrepreneurs face when choosing a particular legal form for … comparable firm under full liability. We also confirm the previously found negative relationship between employment growth and …

This paper assesses the consequences of implementing a joint liability debt system in a two-country small open economy … model. With joint liability a default of one country makes the other participant liable for its debt. The results highlight … a trade-off between the contagion risk, in the sense that this instrument may push some member states to default even …