Firms engage in NME in order to discount nominal prices which remain well above market-clearing levels. The mechanisms which prevent a convergence between formal and actual transaction values include asset valuation rules, depreciation schedules, tax regulations and an inadequate bankruptcy mechanism.

DOI link for Firms engage in NME in order to discount nominal prices which remain well above market-clearing levels. The mechanisms which prevent a convergence between formal and actual transaction values include asset valuation rules, depreciation schedules, tax regulations and an inadequate bankruptcy mechanism.

Firms engage in NME in order to discount nominal prices which remain well above market-clearing levels. The mechanisms which prevent a convergence between formal and actual transaction values include asset valuation rules, depreciation schedules, tax regulations and an inadequate bankruptcy mechanism.