DP878 The Economics of Bankruptcy and the Transition to a Market Economy

Author(s):	István Abel, Konstantine Gatsios
Publication Date:	December 1993
Keyword(s):	Bankruptcy, Economic Transformation, Hungary, Liquidation, Reorganization
JEL(s):	G33, P51
Programme Areas:	Applied Macroeconomics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=878

This paper looks at simple decision rules in bankruptcy procedures. It describes special issues of enterprise liquidation and reorganization during economic transformation. The reforms of the financial system and other important factors in economic transformation influence the impact of bankruptcy regulation in a way distorting it towards liquidation.