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Title:Bankruptcy and Voluntary Liquidation: Evidence for New Firms in East and West Germany after Unification PDF Logo
Authors:Prantl, Susanne
Issue Date:2003
Series/Report no.:ZEW Discussion Papers 03-72
Abstract:Exploiting the unique economic situation after German unification, I investigate how exit decisions deviate between new firms in a transition and a comparatively stable market environment. Two competing exit mechanisms are considered: entrepreneurial self-selection via voluntary liquidation and external selection based on insolvency regulation. Distinguishing between the competing exit modes proves to be crucial in semi-parametric propor- tional hazard-rate estimations. Comparing East and West Germany, I find distinct education and size effects and a higher share of bankruptcy-related liquidations in East Germany. These results are argued to reflect different industry structures, capital and labor market conditions in both parts of Germany.
Subjects:Exit
Bankruptcy
Voluntary Liquidation
Transition Economy
Duration Analysis
JEL:C14
L20
P30
P52
C41
Document Type:Working Paper
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

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