How much debtors' punishment?
Autor(a) principal: | |
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Data de Publicação: | 2006 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/788 |
Resumo: | This paper investigates how the bankruptcy exemptions applied by the Personal Bankruptcy Law in each American state a§ect the aggregated level of individuals and small businessesí loans. Higher levels of bankruptcy exemptions imply in a lenient rule, motivating debtors to Öle for bankruptcy, what makes lenders worsen the terms of credit. On the other hand, lower levels of exemptions imply in a harsh punishment to debtors, inhibiting their demand for credit fearing a possible bankruptcy by bad luck. ConÖrming the theoretical claims, empirical tests show the existence of a non-monotonic shape in the relationship between the bankruptcy exemptions and the amount of credit to individuals and small businesses, where the optimal level of exemptions should be neither too high nor too low. Since the majority of the states in U.S. do not apply the optimal level, an intervention that brings the exemption level closer to the optimal one can be credit and welfare enhancing. |
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Araújo, Aloísio Pessoa deFunchal, BrunoEscolas::EPGEFGV2008-05-13T15:34:24Z2008-05-13T15:34:24Z2006-05-010104-8910http://hdl.handle.net/10438/788This paper investigates how the bankruptcy exemptions applied by the Personal Bankruptcy Law in each American state a§ect the aggregated level of individuals and small businessesí loans. Higher levels of bankruptcy exemptions imply in a lenient rule, motivating debtors to Öle for bankruptcy, what makes lenders worsen the terms of credit. On the other hand, lower levels of exemptions imply in a harsh punishment to debtors, inhibiting their demand for credit fearing a possible bankruptcy by bad luck. ConÖrming the theoretical claims, empirical tests show the existence of a non-monotonic shape in the relationship between the bankruptcy exemptions and the amount of credit to individuals and small businesses, where the optimal level of exemptions should be neither too high nor too low. Since the majority of the states in U.S. do not apply the optimal level, an intervention that brings the exemption level closer to the optimal one can be credit and welfare enhancing.engEscola de Pós-Graduação em Economia da FGVEnsaios Econômicos;615Personal bankruptcyCreditEconomiaEconomiaFalênciaCréditosHow much debtors' punishment?info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessORIGINAL2067.pdfapplication/pdf342536https://repositorio.fgv.br/bitstreams/8f2be4ca-3ea6-47bb-8de1-cfeceb56bbdb/downloadb522b8c22dd47c7bc0d0d32fa565e504MD51TEXT2067.pdf.txt2067.pdf.txtExtracted texttext/plain86320https://repositorio.fgv.br/bitstreams/26c3adbf-3811-4622-93fa-1fcbc0235441/download2090aaedbe53d44569e842c61a9cf8d2MD56THUMBNAIL2067.pdf.jpg2067.pdf.jpgGenerated Thumbnailimage/jpeg3167https://repositorio.fgv.br/bitstreams/c96e151a-d3ac-4a54-b4cc-19000bcd57a8/downloadc2d666d3e0f6e58765ba878d66b00385MD5710438/7882023-11-09 21:00:35.806open.accessoai:repositorio.fgv.br:10438/788https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-09T21:00:35Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
How much debtors' punishment? |
title |
How much debtors' punishment? |
spellingShingle |
How much debtors' punishment? Araújo, Aloísio Pessoa de Personal bankruptcy Credit Economia Economia Falência Créditos |
title_short |
How much debtors' punishment? |
title_full |
How much debtors' punishment? |
title_fullStr |
How much debtors' punishment? |
title_full_unstemmed |
How much debtors' punishment? |
title_sort |
How much debtors' punishment? |
author |
Araújo, Aloísio Pessoa de |
author_facet |
Araújo, Aloísio Pessoa de Funchal, Bruno |
author_role |
author |
author2 |
Funchal, Bruno |
author2_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Araújo, Aloísio Pessoa de Funchal, Bruno |
dc.subject.eng.fl_str_mv |
Personal bankruptcy Credit |
topic |
Personal bankruptcy Credit Economia Economia Falência Créditos |
dc.subject.area.por.fl_str_mv |
Economia |
dc.subject.bibliodata.por.fl_str_mv |
Economia Falência Créditos |
description |
This paper investigates how the bankruptcy exemptions applied by the Personal Bankruptcy Law in each American state a§ect the aggregated level of individuals and small businessesí loans. Higher levels of bankruptcy exemptions imply in a lenient rule, motivating debtors to Öle for bankruptcy, what makes lenders worsen the terms of credit. On the other hand, lower levels of exemptions imply in a harsh punishment to debtors, inhibiting their demand for credit fearing a possible bankruptcy by bad luck. ConÖrming the theoretical claims, empirical tests show the existence of a non-monotonic shape in the relationship between the bankruptcy exemptions and the amount of credit to individuals and small businesses, where the optimal level of exemptions should be neither too high nor too low. Since the majority of the states in U.S. do not apply the optimal level, an intervention that brings the exemption level closer to the optimal one can be credit and welfare enhancing. |
publishDate |
2006 |
dc.date.issued.fl_str_mv |
2006-05-01 |
dc.date.accessioned.fl_str_mv |
2008-05-13T15:34:24Z |
dc.date.available.fl_str_mv |
2008-05-13T15:34:24Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/788 |
dc.identifier.issn.none.fl_str_mv |
0104-8910 |
identifier_str_mv |
0104-8910 |
url |
http://hdl.handle.net/10438/788 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.ispartofseries.por.fl_str_mv |
Ensaios Econômicos;615 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
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