Legal Rules and Bankruptcy Rates: Historical Evidence from the States

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Legal Rules and Bankruptcy Rates: Historical Evidence from the States

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dc.contributor.author Hansen, Mary Eschelbach
dc.contributor.author Hansen, Bradley A.
dc.date.accessioned 2009-02-19T14:10:00Z
dc.date.available 2009-02-19T14:10:00Z
dc.date.created 2006-12
dc.date.issued 2006-12
dc.identifier.uri http://hdl.handle.net/1961/4983
dc.description Working Paper No. 2006-16. 49 pages. en
dc.description.abstract Since the early twentieth century, observers have attributed the wide variation in state bankruptcy rates to variation in state legal rules such as garnishment and bankruptcy exemptions. Recent econometric analyses, however, conclude that legal rules do not matter. We explore the impact of legal rules on bankruptcy rates using a new technique—fixed effects vector decomposition—to exploit historical variation in legal rules. The technique allows us to estimate the impact of timeinvariant legal rules in a fixed effects framework. We find that the variation in state legal rules explains much of the variation in state wage earner bankruptcy rates for 1926 to 1932. en
dc.description.sponsorship Department of Economics, American University en
dc.language.iso en_US en
dc.publisher Department of Economics, American University en
dc.subject.other Bankruptcy en
dc.subject.other Fixed effects vector decomposition en
dc.subject.other Law and economics en
dc.title Legal Rules and Bankruptcy Rates: Historical Evidence from the States en
dc.type Working Paper en


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