|Marin, Dalia; Schnitzer, Monika (2005): Disorganization and financial collapse. In: European Economic Review, Vol. 49, No. 2: pp. 387-408|
Since the fall of communism, the former Soviet Union experienced a strong output decline and a dramatic increase in arrears and barter. We develop a model which explains how these three phenomena are connected. We introduce liquidity and credit constraints into a model of disorganization and show how these problems can alleviate the hold-up problem. We argue further that barter creates a hostage that allows to deal with disorganization when credit enforcement becomes prohibitively costly. Based on a firm survey in Ukraine in 1997, we test how input shortages, financial shortages and barter affect output growth of firms.
Economics > Chairs > Chair of International Economics
Economics > Chairs > Seminar for Comparative Economics
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:49|
|Last Modified:||29. Apr 2016 09:16|