, inter-firms arrears and barter in transition economies are connected. Based on a survey of 165 barter deals in the Ukraine … alleviate the hold-up problem. We argue further that barter creates a hostage which allows to deal with disorganization when … credit enforcement is prohibitively costly. The theory helps to explain how the three observed phenomena of output decline …

costly. Based on a firm survey in Ukraine in 1997, we test how input shortages, financial shortages and barter affect output … arrears and barter. We develop a model which explains how these three phenomena are connected. We introduce liquidity and … further that barter creates a hostage that allows to deal with disorganization when credit enforcement becomes prohibitively …

, inter-firms arrears and barter in transition economies are connected. Based on a survey of 165 barter deals in the Ukraine … alleviate the hold-up problem. We argue further that barter creates a hostage which allows to deal with disorganization when … credit enforcement is prohibitively costly. The theory helps to explain how the three observed phenomena of output decline …