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When Credit Dries Up: Job Losses in the Great Recession

Bentolila, Samuel; Jansen, Marcel; Jiménez, Gabriel; … - C.E.P.R. Discussion Papers - 2013

We use a unique dataset to estimate the impact of a large credit supply shock on employment in Spain. We exploit marked differences in banks' health at the onset of the Great Recession. Several weak banks were rescued by the State and they reduced credit more than other banks. We compare...

Persistent link: https://www.econbiz.de/10011084330

Investments and the Holdup Problem in a Matching Market

Bester, Helmut - C.E.P.R. Discussion Papers - 2009

This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search frictions, both parties in a match are partially locked-in when they bargain over the joint surplus from their sunk investments. The associated holdup problem depends on market...

Persistent link: https://www.econbiz.de/10005036243

Entry Mistakes, Entrepreneurial Boldness and Optimism

Brocas, Isabelle; Carrillo, Juan D - C.E.P.R. Discussion Papers - 1999

We analyze the investment decision of a population of time inconsistent entrepreneurs who overweight current payoffs relative to future returns. We show that, in order to avoid inefficient procrastination, agents may find it optimal to keep optimistic priors about their chances of success and...

Persistent link: https://www.econbiz.de/10005791696

A Theory of Income Smoothing When Insiders Know More Than Outsiders

Acharya, Viral V; Lambrecht, Bart - C.E.P.R. Discussion Papers - 2012

We consider a setting in which insiders have information about income that outside shareholders do not, but property rights ensure that outside shareholders can enforce a fair payout. To avoid intervention, insiders report income consistent with outsiders' expectations based on publicly...

Persistent link: https://www.econbiz.de/10011083832

Capture of Bankruptcy: Theory and Evidence from Russia

Lambert-Mogiliansky, Ariane; Sonin, Konstantin; … - C.E.P.R. Discussion Papers - 2000

Laws that work well in a rule-of-law country may produce unexpected outcomes in a corrupt environment. We argue that the legal system in Russia is faulted by the capture of regional divisions of arbitrage courts. We analyse the consequences of this for the efficiency of Russian bankruptcy law....

Persistent link: https://www.econbiz.de/10005656302

Are Russian Commercial Courts Biased? Evidence from a Natural Bankruptcy Experiment

Lambert-Mogiliansky, Ariane; Sonin, Konstantin; … - C.E.P.R. Discussion Papers - 2006

procedures initiated after the law took effect. In particular, controlling for indicators of firms’ insolvency and the quality of …

Persistent link: https://www.econbiz.de/10005123934

Legal Form, Growth and Exit of West German Firms - Empirical Results for Manufacturing, Construction, Trade and Service Industries

Harhoff, Dietmar; Stahl, Konrad; Woywode, Michael - C.E.P.R. Discussion Papers - 1996

under limited liability should be characterized by higher than average insolvency and employment growth rates. We test these … characterized by higher growth and higher insolvency rates than comparable firms under full liability. Surprisingly, the likelihood … liquidation, while the propensity to insolvency is not affected by the owner’s age. The basic empirical results hold in pooled …

Persistent link: https://www.econbiz.de/10005136761

Party Governance and Political Competition with an Application to the American Direct Primacy

Castanheira, Micael; Crutzen, Benoît SY; Sahuguet, Nicolas - C.E.P.R. Discussion Papers - 2005

use our theory to interpret the introduction of the Direct Primary system in the USA at the beginning of the 20th century. …

Persistent link: https://www.econbiz.de/10005498196

Credit, Wages and Bankruptcy Laws

Biais, Bruno; Mariotti, Thomas - C.E.P.R. Discussion Papers - 2003

We study the impact of different bankruptcy laws in general equilibrium, taking into account the interactions between the credit and labour markets, as well as wealth heterogeneity. Soft bankruptcy laws often preclude liquidation, to avoid ex-post inefficiencies. This worsens credit rationing,...

Persistent link: https://www.econbiz.de/10005498012

Optimal Debt Contracts under Costly Enforcement

Hvide, Hans K; Leite, Tore - C.E.P.R. Discussion Papers - 2007

We consider a financing game with costly enforcement based on Townsend (1979), but where monitoring is non-contractible and allowed to be stochastic. Debt is the optimal contract. Moreover, the debt contract induces creditor leniency and strategic defaults by the borrower on the equilibrium...

Persistent link: https://www.econbiz.de/10005498123