Debt Overhang and Barter in Russia
Sergei Guriev
- Fonction : Auteur
- PersonId : 968402
- IdHAL : sergei-guriev
- ORCID : 0000-0001-6048-2169
- IdRef : 146487192
Mathilde Maurel
- Fonction : Auteur
- PersonId : 5884
- IdHAL : mathilde-maurel
- ORCID : 0000-0003-4543-4286
- IdRef : 050797379
Résumé
This paper develops a model in which costly barter is used by firms to protect working capital against outside creditors. Although creditors could agree to postpone debt payments and to avoid destroying the firm's working capital, if the firm cannot commit not to divert cash ex post, the outcome of renegotiation still provides ex ante incentives to use barter. We show that the greater is the debt overhang, the more likely is the use of barter, with and without the possibility of debt restructuring. Empirical evidence from Russian firm-level data is shown to be consistent with the model's predictions.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Résumé |
en
This paper develops a model in which costly barter is used by firms to protect working capital against outside creditors. Although creditors could agree to postpone debt payments and to avoid destroying the firm's working capital, if the firm cannot commit not to divert cash ex post, the outcome of renegotiation still provides ex ante incentives to use barter. We show that the greater is the debt overhang, the more likely is the use of barter, with and without the possibility of debt restructuring. Empirical evidence from Russian firm-level data is shown to be consistent with the model's predictions.
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Titre |
no
Debt Overhang and Barter in Russia
|
Auteur(s) |
Sergei Guriev
1
, Igor Makarov
2
, Mathilde Maurel
3
1
New Economic School
( 110466 )
- Nakhimovsky pr. 47, Moscow, 117418, Russia
- Russie
2
MIT Sloan -
Sloan School of Management
( 110467 )
- 50 Memorial Drive, Cambridge, Massachusetts, 02142
- États-Unis
3
ROSES -
Réformes et Ouverture des Systèmes Economiques post-Socialistes
( 1214 )
- Maison des Sciences Économiques 106-112, Bd de l'Hôpital 75647 PARIS CEDEX 13
- France
|
Vulgarisation |
Non
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Langue du document |
Anglais
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Nom de la revue |
|
Audience |
Internationale
|
Date de publication |
2002-12
|
Volume |
30
|
Numéro |
4
|
Page/Identifiant |
635-656
|
Comité de lecture |
Oui
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Mots-clés |
de
Debt, Russia
|
DOI | 10.1006/jcec.2002.1797 |
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