کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5099720 1377025 2006 29 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Fresh start or head start? Uniform bankruptcy exemptions and welfare
موضوعات مرتبط
مهندسی و علوم پایه ریاضیات کنترل و بهینه سازی
پیش نمایش صفحه اول مقاله
Fresh start or head start? Uniform bankruptcy exemptions and welfare
چکیده انگلیسی
The 1990s witnessed a historically unprecedented number of personal bankruptcy filings. In response, congressional debate over bankruptcy law has recently led to several proposals aimed at making it more difficult to exempt wealth in a bankruptcy. In this paper, I evaluate uniform exemption policy primarily within the context of the recent congressional proposal H.R. 975. I develop an incomplete markets model where secured and unsecured assets coexist and are treated differentially in a bankruptcy proceeding. I find that exemptions are associated positively with filing rates, equity holdings in bankruptcy, and welfare. I find, however, that exemptions are strongly negatively associated with the availability of unsecured credit. Nonetheless, the welfare effects of exemptions result from changes in borrowing costs, changes in an implicit tax on self-insurance, and most crucially, changes in the level of state-contingency provided by unsecured debt. As a quantitative matter, these effects are resolved in a favor of a minor, but positive, role for exemptions.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Economic Dynamics and Control - Volume 30, Issue 11, November 2006, Pages 2051-2079
نویسندگان
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