We explore the link between bankruptcy laws and entrepreneurship in the U.S states. Using two measures of … entrepreneurship capturing alternative conceptions of this phenomenon, we find that bankruptcy laws more favorable to debtors lead to … understand the impact of public policies on this most vital of human activities. -- bankruptcy law ; entrepreneurship …

Homestead exemptions to personal bankruptcy allow households to retain their home equity up to a limit determined at … the state level. Households that may experience bankruptcy thus have an incentive to bias their portfolios towards home … bankruptcy on account of unpaid medical bills. The bias is further stronger for households with mortgage finance, shorter house …

by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the … in homestead exemptions, which are an important part of U.S. bankruptcy regulation, have a small effect on the quantity … and price of unsecured debt. -- household debt portfolios ; housing ; collateral ; bankruptcy ; commitment ; income risk …