Personal bankruptcy statutes are analyzed as social insurance agreements. The risk‐sharing and incentive effects resulting from changes in bankruptcy laws are studied. It is shown that increasing the leniency of bankruptcy statutes may have unambiguous short‐term benefits to potential bankrupts, but may be detrimental in the long‐run.
|Original language||English (US)|
|Number of pages||12|
|State||Published - Jan 1 1986|
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Economics and Econometrics