Menzies, Gordon Douglas - In: Review of Applied Economics 4 (2008) 1-2
Hyper-incentive contracts (Menzies 2004) can be used to pursue humanitarian goals (providing a safety net) while allowing creditors to offer innovative repayment friendly contracts to debtors (eliminating a debt overhang). Both the contract of Krugman (1988) and the hyper-incentive contract are...