being credit rationed, loan size, and the probability of bankruptcy using household-level data from the Japanese Panel …. Contrary to the predictions of the existing theory, we find that better judicial enforcement increases the probability of being … bankruptcy, a result that is consistent with lax screening effects …

This paper compares the equilibrium dynamics of an economy facing an aggregate collateral constraint on external debt … to the dynamics of an economy facing a collateral constraint imposed at the level of each individual agent. The aggregate … collateral constraint is intended to capture an environment in which foreign investors base their lending decisions predominantly …

An iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism … driving asset prices to 'overshoot' equilibrium when an asset bubble bursts--threatening widespread insolvency and what … to crisis resolution. The usual bankruptcy procedures for doing this fail to internalise the price effects of asset 'fire …

We exploit a 2004 credit reform in Brazil that simplified the sale of repossessed cars used as collateral for auto … of a credit reform, highlighting the crucial role that collateral and repossession play in the liberalization and …

This paper argues that the debt forgiveness provided by the U.S. consumer bankruptcy system helped stabilize employment … levels during the Great Recession. We document that over this period, states with more generous bankruptcy exemptions had …-post debt forgiveness provided by the consumer bankruptcy system during the Great Recession increased aggregate employment by …

pecuniary externalities due to flow collateral constraints. It shows that the optimal policy calls for capital controls to be …