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Debt Enforcement Around the World

Listed author(s):
  • Shleifer, Andrei
  • McLiesh, Caralee
  • Hart, Oliver
  • Djankov, Simeon

Insolvency practitioners from 88 countries describe how debt enforcement will proceed against an identical hotel about to default on its debt. We use the data on time, cost, and the likely disposition of the assets (preservation as a going concern vs. piecemeal sale) to construct a measure of the efficiency of debt enforcement in each country. This measure is strongly correlated with per capita income and legal origin and predicts debt market development. Several characteristics of debt enforcement procedures, such as the structure of appeals and availability of floating charge finance, influence efficiency.

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File URL: http://dash.harvard.edu/bitstream/handle/1/2961825/debt_enforcement_JPE_final.pdf
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Paper provided by Harvard University Department of Economics in its series Scholarly Articles with number 2961825.

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Date of creation: 2008
Publication status: Published in Journal of Political Economy
Handle: RePEc:hrv:faseco:2961825
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Web page: http://www.economics.harvard.edu/

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  7. Simeon Djankov & Oliver Hart & Caralee McLiesh & Andrei Shleifer, 2008. "Debt Enforcement around the World," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 1105-1149, December.
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