193 research outputs found
Hungary's bankruptcy experience, 1992-93
No full textHungary adopted a tough new bankruptcy law in late 1991 that took effect on January 1, 1992. It required managers of firms with arrears over 90 days to any creditor to file for either reorganization or liquidation within eight days (the so-called"automatic trigger") and provided a rather sympathetic framework in which to do so. The result: since January 1992, more than 25,000 cases have been filed - far beyond lawmakers'expectations. Both positive and negative views about the law have been expressed, but details about how the process has actually worked have been scarce. The authors help fill this information gap by providing detailed data on a randomly selected stratified sample of actual cases filed in 1992-93, supplemented by information gained through interviews with judges, liquidations, and firms involved in bankruptcy. Their conclusions are as follows. First, the bankruptcy process appears to have had some degree of economic logic in 1992 and 1993. Better firms were more likely to enter and emerge"successfully"from reorganization, while worse firms were more likely either to fail in reorganization or to file directly for liquidation. Second, judicial reorganization need not be slow and costly. The first wave of reorganizations was handled surprisingly quickly, especially considering the sheer number of cases, the novelty of the process, and the shortage of trained judges. This quickness was possible largely because of the decentralized design of the process. Once the court approved a case, the court had little role. (Amendments added in 1993 may have made the process more bureaucratic and expensive). Third, in this sample, major delays occurred not in reorganization but in liquidation. Creditors will do almost anything to avoid filing for liquidation, and once firms enter liquidation they are still likely to be kept alive indefinitely. In the end, this lack of a viable creditor-led"exit"and debt collection mechanism harms firms by increasing the cost and reducing the flow of credit. Fourth, although the bankruptcy process displays some degree of economic logic, one should not assume that it operates as a similar law would in a market economy. In particular, a likely source of private gain in Hungary appears to be asset or other value diversion (or"value-stripping) before bankruptcy. Fifth, the main need is to strengthen the incentives of creditors to monitor the process closely and to improve their ability to do so.Banks&Banking Reform,International Terrorism&Counterterrorism,Strategic Debt Management,Small Scale Enterprise,Small and Medium Size Enterprises,Banks&Banking Reform,Strategic Debt Management,Legal Products,International Terrorism&Counterterrorism,Economic Theory&Research
Why should philosophers of science pay attention to the commercialization of academic science?
No full text
When can statistical theories be causally closed?
No full textThe notion of common cause closedness of a classical, Kolmogorovian probability space with respect to a causal independence relation between the random events is defined, and propositions are presented that characterize common cause closedness for specific probability spaces. It is proved in particular that no probability space with a finite number of random events can contain common causes of all the correlations it predicts; however, it is demonstrated that probability spaces even with a finite number of random events can be common cause closed with respect to a causal independence relation that is stronger than logical independence. Furthermore it is shown that infinite, atomless probability spaces are always common cause closed in the strongest possible sense. Open problems concerning common cause closedness are formulated and the results are interpreted from the perspective of Reichenbach's Common Cause Principle
Reichenbachian Common Cause Systems
No full textA partition of a Boolean algebra \cS in a probability measure space (\cS,p) is called a Reichenbachian common cause system for the correlated pair of events in \cS if any two elements in the partition behave like a Reichenbachian common cause and its complement, the cardinality of the index set is called the size of the common cause system. It is shown that given any correlation in (\cS,p), and given any finite size , the probability space (\cS,p) can be embedded into a larger probability space in such a manner that the larger space contains a Reichenbachian common cause system of size for the correlation. It also is shown that every totally ordered subset in the partially ordered set of all partitions of \cS$ contains only one Reichenbachian common cause system. Some open problems concerning Reichenbachian common cause systems are formulated
Do the Causal Principles of Modern Physics Contradict Causal Anti-Fundamentalism?
No full textIn Norton(2003), it was urged that the world does not conform at a fundamental level to some robust principle of causality. To defend this view, I now argue that the causal notions and principles of modern physics do not express some universal causal principle, brought to light by discoveries in physics. Rather they merely assert that, according to relativity theory, spacetime has an invariant velocity, that of light; and that theories of matter admit no propagations faster than light
Local primitive causality and the common cause principle in quantum field theory
No full textIf is a net of local von Neumann algebras satisfying standard axioms of algebraic relativistic quantum field theory and and are spacelike separated spacetime regions, then the system is said to satisfy the Weak Reichenbach's Common Cause Principle iff for every pair of projections , correlated in the normal state there exists a projection belonging to a von Neumann algebra associated with a spacetime region contained in the union of the backward light cones of and and disjoint from both and , a projection having the properties of a Reichenbachian common cause of the correlation between and . It is shown that if the net has the local primitive causality property then every local system with a locally normal and locally faithful state and open bounded and satisfies the Weak Reichenbach's Common Cause Principle
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