Financial reorganization under bankruptcy reduces a firm’s debts to a serviceable level through negotiations overseen by courts. Academics have suggested using markets as an alternative to such negotiations, recognizing that equity holders and junior claimants have call options to buy the firm back from senior creditors. This paper further develops this market-based approach when claimants are ...

Introduction Oregon is home to about 23,000 pathological gamblers and many of them turn to crime to support their gambling after legal sources of funds are exhausted. Studies show that two out of three pathological gamblers commit crimes in order to pay off debts or to continue gambling (Brown, 1987). While the majority of crimes are non-violent, they affect all of us by contributing to higher ...

Classical models of General Equilibrium Theory, both with complete markets and incomplete markets, assume that all borrowers fully keep their promises. This assumption was heavily criticized as it does not reflect actual financial markets practices. In the Nineties, general equilibrium models have allowed for default. More precisely, borrowers may actually default on future asset returns. When ...

This paper evaluates the welfare effects of lowering the long-run inflation target in a life-cycle model of housing, nominal debts, and money (ie., a liquid asset). To smooth out idiosyncratic earnings risk, agents make portfolio choices in the presence of transactions costs and borrowing constraints. We find that lowering inflation from 2% to 1% improves welfare and that the welfare gain is ev...

The development of sharia economy in Indonesia is increasing. Islamic economic can be seen from the financial institutions and instruments they offer, ranging banks, capital markets, insurance. With these developments, nowadays financing activities with contracts are increasing growing rapidly. However, only a few pay it off. In other words, non-performing or bad loans at often occur. Non-perfo...

The Indonesian government conduct several strategies to enhance the SOE’s performance. However, some financial indicators show that reform program has not optimally achieved objective SOE Therefore this paper is aimed discuss underlying factors influence As a result, study found contribution of Indonesia SOEs economy relatively low and stagnant. Besides that, many have yet operated optimally. r...

We explore the quality of political representation of constituents’ preferences for budgetary decisions within a quasi-experimental setting. In the Swiss referendum process, constituents reveal their preferences for budgetary proposals which are either expected to increase or decrease public debts. We match individual politicians’ voting behavior on debt increasing and debt reducing legislative...

The law's objective is to uphold the principle of justice. Contractual debts, interest-bearing unsecured and debts with payment terms are all included in restructuring plans. All must be accompanied by a contract. If business defaults, contract serves as proof debt. This research focuses on Indonesia's bankruptcy law. study employs an empirical qualitative legal method. recommends categorizing ...