First-best debt relief

Gordon Menzies

    Research output: Contribution to journalArticle


    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 .
    Original languageEnglish
    Pages (from-to)301-306
    JournalEconomics Letters
    Issue number2004
    Publication statusPublished - 2004

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