Insolvency Regimes And Productivity Growth: A Framework For Analysis

@inproceedings{McGowan2016InsolvencyRA,
  title={Insolvency Regimes And Productivity Growth: A Framework For Analysis},
  author={Muge Adalet McGowan and Dan Andrews},
  year={2016}
}
This paper develops an analytical framework to identify the policies relevant for firm exit and the channels through which they shape aggregate productivity growth. A range of potentially relevant policies are identified, spanning insolvency regimes, regulations affecting product, labour and financial markets, macroeconomic policies, subsidies, taxation and environment regulations. These policies can directly shape aggregate productivity along the exit margin through a variety of channels… 

Figures and Tables from this paper

Insolvency regimes, zombie firms and capital reallocation

This paper explores cross-country differences in the design of insolvency regimes and their potential links with two inter-related sources of labour productivity weakness: the survival of “zombie”

The walking dead? Zombie firms and productivity performance in OECD countries

This paper explores the extent to which “zombie” firms – defined as old firms that have persistent problems meeting their interest payments – are stifling labour productivity performance. The results

Reforms for sustainable productivity growth in Ireland

The Irish economy has experienced a decline in productivity growth over the past decade. This has mostly reflected the poor performance of local firms, with the large productivity gap between

Breaking the Shackles: Zombie Firms, Weak Banks and Depressed Restructuring in Europe

This paper explores the connection between “zombie” firms (firms that would typically exit in a competitive market) and bank health and the consequences for aggregate productivity in 11 European

Corporate Insolvency Rules and Zombie Lending

Bank lending to less productive firms at subsidized rates has long been recognized as an important mechanism that can help banks in the short run, but deepens and prolongs economic crises.

Investment in OECD Countries: A Primer

Aggregate business investment is a major driver of long-term economic growth. It has been weak in many advanced economies over the last decade, partly due to cyclical demand-side effects.

Productivity Growth in Italy: A Tale of a Slow-Motion Change

Productivity is the main factor holding back long-term economic growth in Italy. Since the second half of the 1990s, productivity growth has been feeble both by historical standards and compared with

Fostering innovative business investment in Spain

Spain has chronically low productivity growth, which undermines its ability to generate higher living standards. Important contributors to low productivity growth are the misallocation of capital to

Improving productivity in New Zealand's economy

New Zealand ranks highly on most indicators of well-being, but incomes are below the OECD average due to low labour productivity. Low labour productivity is only partly explained by the industry

References

SHOWING 1-10 OF 18 REFERENCES

Capital Allocation and Productivity in South Europe

Following the introduction of the euro in 1999, countries in the South experienced large capital inflows and low productivity. We use data for manufacturing firms in Spain to document a significant

BANKRUPTCY AS A DELIBERATE STRATEGY: THEORETICAL CONSIDERATIONS AND EMPIRICAL EVIDENCE

Bankruptcy and bankruptcy reorganizations have been identified as remedies for financial distress, but there is little agreement on their value to firms, managers, and the general economy. This paper

Different Approaches to Bankruptcy

In the last fifteen years or so, lawyers working in law and economics and economists with an interest in legal matters have turned their attention to the topic of bankruptcy. A large amount of work

An Estimated Model of Entrepreneurial Choice under Liquidity Constraints

Is the capital function distinct from the entrepreneurial function in modern economies? Or does a person have to be wealthy before he or she can start a business? Knight and Schumpeter held different

Personal Bankruptcy and the Level of Entrepreneurial Activity*

  • W. FanM. White
  • Economics, Business
    The Journal of Law and Economics
  • 2003
The U.S. personal bankruptcy system functions as a bankruptcy system for small businesses as well as consumers, because debts of noncorporate firms are personal liabilities of the firms’ owners. If

Bankruptcy Laws and Entrepreneur– Friendliness

Using bankruptcy laws as a case of formal institutions, we show how formal institutions impact entrepreneurship development. Historically, bankruptcy laws usually have been harsh. Recently, many

Corporate Reorganization and Strategic Behaviour: An Economic Analysis of Canadian Insolvency Law and Recent Proposals for Reform

Upon a debtor's bankruptcy, creditors act opportunistically towards the disposition of the debtor's assets. J.J. Quinn discusses Part III of the Canadian Bankruptcy Act and recent proposals for

A Study of Bankruptcy Costs and the Allocation of Control

This article studies how the allocation of control rights in bankruptcy influences outcomes. Using Hungarian data, we find that the large majority of bankrupt firms in our sample are maintained as

Mobility, Skills, and the Michigan Non-Compete Experiment

It is found that the enforcement of non-competes indeed attenuates mobility, andNon-compete enforcement decreases mobility more sharply for inventors with firm-specific skills and for those who specialize in narrow technical fields.

Approaches to Corporate Debt Restructuring in the Wake of Financial Crises

This paper starts from a discussion of the economic case for moderated government intervention in debt restructuring in the nonfinancial corporate sector. It then draws on lessons from past crises to