01731cas a2200241 a 4500 AALejournalIMF006299 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451962932 1018-5941 BD-DhAAL BD-DhAAL Rodriguez-Delgado, Jose Daniel. Bankruptcy and Firm Dynamics : The Case of the Missing Firms / Jose Daniel Rodriguez-Delgado. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Financial frictions have been documented as an important determinant of firm dynamics. In this paper I model bankruptcy procedures, liquidation in particular, as an institutional feature that affects both sides of financial transactions. I construct a model of firm dynamics that generate endogenous borrowing limits and I find that a) inefficient bankruptcy procedures can have quantitatively important aggregate effects, but more importantly; b) that such effects would not be directly visible in the firms that industrial censuses and surveys focus on. I conclude that to capture the effects of the legal framework we need to look beyond the existing firms. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2010/041 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/041/001.2010.issue-041-en.xml IMF e-Library