individuals may file for bankruptcy or default on their mortgage. Uncertainty in the model is driven by house price shocks …, education specific productivity shocks, and catastrophic consumption events, while bankruptcy is governed by the basic … Bankruptcy policy. …

We analyze the effect of a bankruptcy law according to which some of the borrower’s assets are exempt from liquidation … – according to personal bankruptcy US State laws prior to 2005 federal reform – in order to identify the signaling role played by …

We propose a parsimonious model with adverse selection where delinquency, renegotiation, and bankruptcy all occur in … equilibrium as a result of a simple screening mechanism. A borrower has private information about her cost of bankruptcy, and a …, delinquency leads to bankruptcy. We apply the model to analyze effects of a government intervention in debt restructuring. We show …

We propose a parsimonious model with adverse selection where delinquency, renegotiation, and bankruptcy all occur in … equilibrium as a result of a simple screening mechanism. A borrower has private information about her cost of bankruptcy, and a …, delinquency leads to bankruptcy. We apply the model to analyze effects of a government intervention in debt restructuring. We show …

This paper studies the optimal determination of bankruptcy exemptions for risk averse borrowers who use unsecured … sufficient to determine whether a bankruptcy exemption level is optimal, or should be increased or decreased. These variables are …' leverage, the borrowers' bankruptcy probability, and the change in bankrupt borrowers' consumption. An application of the …

This paper studies the optimal determination of bankruptcy exemptions for risk averse borrowers who use unsecured … sufficient to determine whether a bankruptcy exemption level is optimal, or should be increased or decreased. These variables are …' leverage, the borrowers' bankruptcy probability, and the change in bankrupt borrowers' consumption. An application of the …