First-best debt relief

Gordon Menzies

doi:10.1016/j.econlet.2003.07.009

First-best debt relief

Gordon Menzies

Research output: Contribution to journal › Article

Abstract

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 language	English
Pages (from-to)	301-306
Journal	Economics Letters
Volume	82
Issue number	2004
DOIs	https://doi.org/10.1016/j.econlet.2003.07.009
Publication status	Published - 2004

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10.1016/j.econlet.2003.07.009

http://hdl.handle.net/1885/81062

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title = "First-best debt relief",

abstract = "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 .",

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DO - 10.1016/j.econlet.2003.07.009

M3 - Article

VL - 82

SP - 301

EP - 306

JO - Economics Letters

JF - Economics Letters

SN - 0165-1765

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First-best debt relief

Abstract

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