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Bankruptcies With Soft Budget Constraint

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  • KAREL JANDA

Abstract

The optimal design of credit contracts and bankruptcy procedures is an important policy question in both developed and developing economies. In this paper we deal with several theoretical considerations related to these important policy problems. The main concern of this paper is with the impact of the relaxation of bankruptcy procedures providing for the possibility of debt renegotiation instead of strictly imposing bankruptcy whenever the debtor falls into default on his or her debt. This paper contributes to the discussion on optimal bankruptcy procedures in the context of soft and hard budget constraint literature. Copyright © 2009 The Author. Journal compilation © 2009 Blackwell Publishing Ltd and The University of Manchester.

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  • Karel Janda, 2009. "Bankruptcies With Soft Budget Constraint," Manchester School, University of Manchester, vol. 77(4), pages 430-460, July.
  • Handle: RePEc:bla:manchs:v:77:y:2009:i:4:p:430-460
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    References listed on IDEAS

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    Cited by:

    1. Karel Janda & Eva Michalíková & Věra Potácelová, 2010. "Gravitační a fiskální modely státní podpory exportních úvěrů v České republice
      [Gravity and Fiscal Models of Government Support of Export Credit in the Czech Republic]
      ," Politická ekonomie, University of Economics, Prague, vol. 2010(3), pages 305-325.
    2. Karel Janda & Eva Michalíková & Jiøí Skuhrovec, 2012. "Credit Support for Export: Econometric Evidence from the Czech Republic," Working Papers IES 2012/12, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised May 2012.
    3. Martin Dòzsa & Karel Janda, 2015. "Corporate asset pricing models and debt contracts," CAMA Working Papers 2015-33, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    4. Janda, Karel & Moreira, David, 2016. "Predicting bankruptcy in European e-commerce sector," MPRA Paper 74460, University Library of Munich, Germany.
    5. Janda, Karel & Rakicova, Anna, 2014. "Corporate Bankruptcies in Czech Republic, Slovakia, Croatia and Serbia," MPRA Paper 54109, University Library of Munich, Germany.

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