First-best debt relief
Date
2004
Authors
Menzies, Gordon
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
Abstract
The rationale for debt relief (J. Dev. Econ. 29 (1988) 253) is second best. In a first-best ontract, a debtor who clears a (partly forgiven) debt receives an additional payment from the creditor, called a hyper-incentive .
Description
Keywords
Keywords: Debt forgiveness; Debt overhang; Hyper-incentive contract
Citation
Collections
Source
Economics Letters
Type
Journal article