Debt Enforcement Around the World / Simeon Djankov, Oliver Hart, Caralee McLiesh, Andrei Shleifer.

Format:

Book

Author/Creator:

Djankov, Simeon.

Contributor:

National Bureau of Economic Research.

Hart, Oliver.

McLiesh, Caralee.

Shleifer, Andrei.

Series:

Working Paper Series (National Bureau of Economic Research) no. w12807.

NBER working paper series no. w12807

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2006.

Summary:

We present insolvency practitioners from 88 countries with an identical case of a hotel about to default on its debt, and ask them to describe in detail how debt enforcement against this hotel will proceed in their countries. We use the data on time, cost, and the likely disposition of the assets (preservation as a going concern versus piecemeal sale) to construct a measure of the efficiency of debt enforcement in each country. We identify several characteristics of debt enforcement procedures, such as the structure of appeals and availability of floating charge finance, that influence efficiency. Our measure of efficiency of debt enforcement is strongly correlated with per capita income and legal origin and predicts debt market development across countries. Interestingly, it is also highly correlated with measures of the quality of contract enforcement and public regulation obtained in other studies.

Notes:

Print version record

December 2006.