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Mortgage cramdown enabled bankruptcy judges to discharge the underwater portion of a mortgage during Chapter 13 bankruptcy before the Supreme Court disallowed this practice in 1993. We exploit the random assignment of cases to judges to quantify the ex-post effects of Chapter 13 bankruptcy over...
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Hospitals anchor much of US health care and receive a third of all medical spending, including various subsidies. Nevertheless, some become insolvent and exit the market. Research has documented subsequent access problems; however, less is understood about broader implications. We examine over...
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This paper surveys the theory on zombie lending incentives and the consequences of zombie lending for the real economy. It also offers a historical perspective by reviewing the growing empirical evidence on zombie lending along three dimensions: (i) the role of under-capitalized banks, (ii)...
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revealed-preference tool to characterize households' valuation of liquidity. A simple dynamic model formalizes the notion that … the prevalence of withdrawals can be used to characterize American households' valuation of liquidity over time and space …. We find pervasive evidence of high valuation of liquidity, hence that shocks are imperfectly insured. Declines in …
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