First-best debt relief

  • Menzies G
  • 3


    Mendeley users who have this article in their library.
  • 0


    Citations of this article.


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 . © 2003 Elsevier B.V. All rights reserved.

Author-supplied keywords

  • Debt forgiveness
  • Debt overhang
  • Hyper-incentive contract

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free