In 2004, Brazil provided an interesting natural experiment concerning personal credit. A new law was enacted allowing banks to offer loans with repayment through automatic payroll or social security benefit deduction, thus removing a significant part of the moral hazard problem by eliminating...

The present paper analyses the influence of the judiciary and bankruptcy law in the credit market and in the economic growth in differents regions of the world. This paper also criticizes the current "Law and Finance" theory, mainly the papers of La Porta et al (1997,1998) and Levine et al...

This study investigates the relationship between debtors? punishment and the credit market development. As the main goal we analyze empirically which is the optimal level of the debtors? punishment, providing the highest credit market development. Aligned with earlier theoretical findings from...