forgiving personal bankruptcy law are less relevant for wealthy potential entrepreneurs who still risk losing their wealth, but … tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and … tests the hypotheses derived by exploiting the introduction of a “fresh start” policy in Germany in 1999 as a natural …

forgiving personal bankruptcy law are less relevant for wealthy potential. - entrepreneurs who still risk losing their wealth …, but tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a … model and tests the hypotheses derived by exploiting the introduction of a "fresh start" policy in Germany in 1999 as a …

forgiving personal bankruptcy law are less relevant for wealthy potential entrepreneurs who still risk losing their wealth, but … tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and … tests the hypotheses derived by exploiting the introduction of a "fresh start" policy in Germany in 1999 as a natural …

forgiving personal bankruptcy law are less relevant for wealthy potential entrepreneurs who still risk losing their wealth, but … tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and … tests the hypotheses derived by exploiting the introduction of a "fresh start" policy in Germany in 1999 as a natural …

forgiving personal bankruptcy law are less relevant for wealthy potential entrepreneurs who still risk losing their wealth, but … tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and … tests the hypotheses derived by exploiting the introduction of a "fresh start" policy in Germany in 1999 as a natural …

wealth insurance and collateral channels, respectively, and where local banks are better able to determine borrower type …

adverse selection (AS). In particular, we study how the level of such exemption affects the role of collateral depending on … higher for borrowers who are requested to post collateral. Moreover, conditional on posting collateral, the cost of credit … does not change with the level of asset exemption. Differently, in the case of AS, the decision to post collateral results …

driven primarily by the insurance effect rather than the borrowing cost effect. Consequently, entrepreneurs prefer more …

Historically, insolvency ... …

estate collateral. This is most pronounced for opaque (for example, very young) firms. Through an extension to our model and … our choice of specification, we show that our findings are most consistent with a collateral-value-based credit supply …