We develop a stochastic dynamic model of bank value maximization under limited liability and in which bankruptcy can …

conflicting goals---mitigating systemic risk, which is thought to emerge when large financial firms enter the bankruptcy process … bailout to save them from bankruptcy and prevent systemic problems. In this article, we review the features of both bankruptcy … features of bankruptcy when resolving systemically important financial institutions, and specifically, how these provisions …

empirical relevance of stigma and information sharing on household bankruptcy and its trend. Many observers of bankruptcy … the more relevant factor in explaining the observed bankruptcy trends. Furthermore, we show that this aggregate trend … that the overall increase in the bankruptcy rates cannot be explained by a decrease in social stigma. We argue that the …

This paper aims to contribute to the growing literature on the causes of consumer bankruptcy. It presents the consumer … bankruptcy decision as an irreversible choice that has an embedded real option value. This allows the use of well known framework … economic factors, such as unemployment, are strong predictors of bankruptcy rates and are consistent with the implications of …

) rising bankruptcy rates and discharge in bankruptcy, (4) rising dispersion in interest rates across households, and (5) the …