the bankruptcy code in Germany that effectively removes their potential impact on CDS firms. Using a unique dataset on …

bankruptcy as a verifiable event that occurs whenever the agent makes a per period loss. This leads to less stringent truth …

A personal bankruptcy law that allows for a "fresh start" after bankruptcy reduces the individual risk involved in … entrepreneurial activity. On the other hand, as risk shifts to creditors who recover less of their credit after a debtor's bankruptcy … forgiving personal bankruptcy law are less relevant for wealthy potential entrepreneurs who still risk losing their wealth, but …

Every year 400,000 entrepreneurs fail and 60,000 file for personal bankruptcy. The option to declare bankruptcy … insurance and credit conditions. A lenient bankruptcy law always worsens credit conditions, in particular for poor entrepreneurs …, we show that the optimal bankruptcy law is very harsh because the benefits from better credit conditions dominate the …