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In this paper we develop a quantitative model of entrepreneurial activity (risk-taking) and consumer bankruptcy choices and use the model to study the effects of bankruptcy regulations on entrepreneurial activity, bankruptcy rate and welfare. We show that eliminating bankruptcy exemptions leads...
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general insolvency law and the special characteristics of banks and the financial system, approaches to resolution procedures …
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, especially, the financial cost of filing for bankruptcy. We study the effects of the reform on bankruptcy, insolvency, and …. We find that the decline in bankruptcy filings resulted in a rise in the rate and persistence of insolvency as well as an … that insolvency is associated with worse financial outcomes than bankruptcy, as insolvent individuals have less access to …
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Just over ten years ago, the American legislative system was rocked by a series of scandals surrounding powerful lobbyist Jack Abramoff who claimed to have “bought” influence in nearly half of the United States congressional offices. The Abramoff scandal brought public attention to three...
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