recognizing that competing airlines may increase service in response to a reduction in flights by a bankrupt airline. We do not …The airline industry's current financial crisis has raised concerns over the ramifications of airline bankruptcies for … healthy airlines are inclined to reduce flights. Moreover, from a consumer and policy perspective, the real concern is total …

that airlines in financial distress, particularly those operating under Chapter 11 bankruptcy protection, reduce prices to … and their rivals. The data suggest that an airline's prices typically decline somewhat before it files for bankruptcy …. The turmoil in the U.S. airline industry has triggered much of the public policy discussion, as some observers have argued …

The U.S. airline industry went through tremendous turmoil in the early 2000's. There were four major bankruptcies and … the airline industry, and estimates the impact of demand and supply changes on profitability. We find that, compared with …

In this paper, we ask how bankruptcy law affects the financial decisions of corporations and its implications for firm … dynamics. According to current U.S. law, firms have two bankruptcy options: Chapter 7 liquidation and Chapter 11 reorganization … to include both bankruptcy options in a general equilibrium environment. Finally, we evaluate a bankruptcy policy change …

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit … insolvent firms happens out of court if in-court bankruptcy is inefficient, giving banks an advantage over bondholders. Riskier … borrowers will use bank loans anywhere, but also bonds when bankruptcy is efficient. The model matches empirical debt mix …

channel in which a firm's bankruptcy reduces collateral values of other industry participants, thereby increasing the cost of … issued by U.S. airlines which includes a detailed description of the underlying assets serving as collateral. Our estimates …

This paper argues that the debt forgiveness provided by the U.S. consumer bankruptcy system helped stabilize employment … levels during the Great Recession. We document that over this period, states with more generous bankruptcy exemptions had …-post debt forgiveness provided by the consumer bankruptcy system during the Great Recession increased aggregate employment by …