Series: IMF Working Papers
Author(s): Jose Daniel Rodríguez-Delgado
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 February 2010
Keywords: firm dynamics, financial constraints, bond, probability, equation, bond price, statistics,
Financial frictions have been documented as an important determinant of firm dynamics. In this paper I model bankruptcy procedures, liquidation in particular, as an institutional feature that affects both sides of...