Baker, Matthew J.; Cosgel, Metin; Miceli, Thomas J. - In: Journal of Economic Behavior & Organization 84 (2012) 1, pp. 216-228
Debtors’ prisons have been commonplace throughout history, including in the United States. While imprisonment for debt no doubt elicited some repayment by benefactors of the debtor, we argue that its primary function was to deter default in the first place by giving borrowers an incentive to...