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Our data show that the choice of default penalty takes the economy to the neighborhood of the chosen equilibrium.
The laboratory data show that the choice of default penalty takes the economy near the chosen equilibrium.
Our data show that the choice of default penalty takes the economy close to the chosen equilibrium.
Even when a killer is guilty beyond any doubt, imprisonment should almost always be the default penalty.
Otherwise, the loans after defaults can carry interest rates of 20percentt or more — similar to the default penalty on a typical credit card.
Because they will be paid back sooner than they expected when they made the investment, they may go to court to claim the 15percentt default penalty, these lawyers said.
Similar(50)
Additionally we discuss the meaning and experimental implications of default penalties that support an active bankruptcy-modified competitive equilibrium.
In our model, decreasing default penalties tightens households' limited liability constraints, which can exacerbate the vacancy posting effect.
An adequate description of economic dynamics requires the introduction of a monetary system including default penalties and expectations in a society whose economy utilizes money and credit.
This would effectively force the financial industry to stop demanding default penalties and go back to the old lease payment schedule — at no cost to taxpayers.
In this paper, we report experimental evidence on the effectiveness of this approach to resolving multiplicity: a society can assign default penalties on fiat money so that the economy selects one of the equilibria.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com