, the SC members may cooperate, reducing their bankruptcy risk considerably; thus, the chance for and extent of inter …-entity financial aid are critical to consider when assessing bankruptcy risk. A cooperative SC member cannot just be financed from debt … our results, bankruptcy risk is SC-specific, rather than a characteristic of an individual firm. Therefore, to finance an …

limits and more lenient bankruptcy - affected intergenerational mobility. Surprisingly, we find that the democratization of … bankruptcy policy lowers mobility since low-income households dissave, hit their constraints more often, and reduce investments … in their children. Quantitatively, the democratization of credit is dominated by more lenient bankruptcy policy and so …

, namely, the abolition of slavery and the evolution of bankruptcy laws. This paper investigates the welfare implications of …