Debt as a Regulatory Constraint
AbstractThis paper is about using specific investments and secured debt to shield a firm from exploitation by a regulatory authority. It is shown that specific investments and secured debt constrain the regulatory authority in its choice of regime, by providing a credible threat of bankruptcy.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 99-02.
Length: 16 pages
Date of creation: Mar 1999
Date of revision:
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More information through EDIRC
regulation; financial structure; hold-up problems;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-03-04 (All new papers)
- NEP-ENT-2002-03-04 (Entrepreneurship)
- NEP-MIC-2002-03-04 (Microeconomics)
- NEP-REG-2002-03-04 (Regulation)
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