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Productivity growth is slowing down among OECD countries, coupled with increased misallocation of resources. A recent strand of literature focuses on the role of non-viable firms (“zombie firms”) to explain these developments. Using a rich firm-level dataset for one of the OECD countries...
Persistent link: https://www.econbiz.de/10011975694
I model an open-end mutual fund investing in illiquid assets and show that the fund's endogenous cash management can generate shareholder runs even with a flexible NAV. The fund optimally re-builds its cash buffers at time t + 1 after outflows at t to prevent future forced sales of illiquid...
Persistent link: https://www.econbiz.de/10011976823
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This paper explores cross-country differences in the design of insolvency regimes and their potential links with two … competitive market) and capital misallocation. New cross-country policy indicators of insolvency regimes are constructed based on … countries’ responses to a recent OECD questionnaire, which aimed to better capture the key design features of insolvency which …
Persistent link: https://www.econbiz.de/10011700546
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