The closing of firms causes social and human hardship and consequently has been subject to regulation, especially in Western Europe. Laws regulating closing are especially relevant in ailing industries. Closing restrictions establish procedures for market exit, reduce the demand for labor prior...

The paper discusses the role of restraints in the economic System. The constraints may relate to different agents of the economic-system so that one may envision the economic system as a Set of hierarchical constraints with each layer.of constraints applying to a more disaggregated level of...