People Job Market Candidates Doctoral...
IWH Medium-Term Projection The IWH medium-term projection shows: If Germany wants to stick to both its current debt...
IWH Doctoral Programme in Economics
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IWH Bankruptcy Research
IWH Bankruptcy Research The Bankruptcy Research Unit of the Halle Institute for...
Postdoctoral Researcher in Productivity Dynamics and Growth (f/m/x, 100%) [2024-06]
Vacancy Postdoctoral Researcher in Productivity Dynamics and...
Postdoctoral Researcher in Entrepreneurship and Innovation (f/m/x, 100%) [2024-05]
Vacancy Postdoctoral Researcher in Entrepreneurship and...
02.02.2023 • 2/2023
Economic growth, public finances and greenhouse gas emissions in the medium term
According to the Halle Institute for Economic Research (IWH) and its medium-term projection of the German economy, growth in the next six years will be about the same as in the past six years, at 1% per year. The national budget will remain in deficit, but the debt level will decline again relative to the gross domestic product (GDP) from 2024 onwards. At this rate of economic expansion, greenhouse gas emissions will continue to decline in the medium term, but at a much slower rate than necessary to meet the national emission reduction targets.
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Postdoctoral Researcher in Labor Economics (f/m/x, 100%) [2024-04]
Vacancy Postdoctoral Researcher in Labor Economics (f/m/x,...
The Impact of Delay: Evidence from Formal out-of-Court Restructuring
Journal of Corporate Finance,
Different types of bankruptcy restructuring procedures are used in most legal systems to decide the fate of businesses facing financial hardship. We study how bargaining failures in an under-researched type of restructuring procedure, a formal out-of-the court procedure impacts the economic performance of participating firms. Croatia introduced a “pre-bankruptcy settlement” (PBS) process in the wake of the Great Recession of 2007–2009. A novel dataset provides us with annual financial statements for both sides of more than 180,000 debtor–creditor pairs, enabling us to address selection into failed negotiations by matching a rich set of creditor and debtor characteristics. Failures to settle at the PBS stage due to idiosyncratic bargaining problems, which effectively delay entry into the standard bankruptcy procedure, lead to a lower rate of survival among debtors as well as reduced employment, revenue, and profits. We are the first study to track how bargaining failures diffuse through the network of creditors, finding a significant negative effect on small creditors, but not others. Our results highlight the impact of delay and the importance of structuring bankruptcy procedures, to rapidly resolve uncertainty about firms’ future prospects.