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Title:Business conditions and default risks across countries PDF Logo
Authors:Pflüger, Michael P.
Russek, Stephan
Issue Date:2011
Series/Report no.:Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5541
Abstract:The risk of default that business firms face is very significant and differs widely across countries. This paper explores the links between countries' business conditions and international trade embedment and the default risk at the country level from a theoretical point of view. Our main contribution is to set up a general equilibrium model which allows us to derive sharp predictions concerning how key factors which shape a country's business and trade environment impact on the default risk of firms which operate in these environments. The predictions are in accord with readily available data.
Subjects:firm death
firm heterogeneity
business conditions and firm productivity
trade integration
JEL:F12
F13
F15
L25
Persistent Identifier of the first edition:urn:nbn:de:101:1-201104133551
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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