The Bankruptcy Decision: Does Stigma Matter?
AbstractIn this paper, we model and estimate the effects of both bankruptcy stigma and financial benefit on household's decisions to file for bankruptcy. We show that the probability of debtors ling for bankruptcy rises when the level of bankruptcy stigma falls. We also show that the level of bankruptcy stigma has external effects , so that individual households are better off if their own bankruptcy stigma level is lower than that in the same credit pool.
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Bibliographic InfoPaper provided by Michigan - Center for Research on Economic & Social Theory in its series Papers with number 98-01.
Length: 49 pages
Date of creation: 1998
Date of revision:
Contact details of provider:
Postal: UNIVERSITY OF MICHIGAN, DEPARTMENT OF ECONOMICS CENTER FOR RESEARCH ON ECONOMIC AND SOCIAL THEORY, ANN ARBOR MICHIGAN U.S.A.
BANKRUPTCY ; DECISION MAKING;
Find related papers by JEL classification:
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
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