Publication:
Commitment with renegotiable debt contracts and verifiable cash flow

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Date

2008

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Journal Article

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Abstract

We study a Buyer-Seller relationship with one-sided relationship-specific investment. Debt commits the Seller not to trade at a low price even though it is renegotiable, and the cash flow is verifiable.

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Elsevier Science Sa

Keywords

Economics

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Economics Letters

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DOI

10.1016/j.econlet.2007.06.035

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https://doi.org/10.1016/j.econlet.2007.06.035
 https://hdl.handle.net/20.500.14288/8552

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GoalOpen Access
08 - Descent Work and Economic Growth
Economic growth should be a positive force for the whole planet.This is why we must make sure that financial progress creates decent and fulfilling jobs while not harming the environment. We must protect labour rights and once and for all put a stop to modern slavery and child labour. If we promote job creation with expanded access to banking and financial services, we can make sure that everybody gets the benefits of entrepreneurship and innovation.

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