Unsecured debt with public insurance: From bad to worse

• 成果类型: Article
• 署名作者: Athreya, Kartik B.; Simpson, Nicole B.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Richmond; Colgate University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.02.007
• 发表日期: 2006
• 页码: 797-825
• 关键词: Incomplete markets; bankruptcy; unemployment

摘要

In U.S. data, income interruptions, the receipt of public insurance, and the incidence of personal bankruptcy are all closely related. The central contribution of this paper is to evaluate bankruptcy protection and public insurance in a unified setting where each program alters incentives in the other. Our analysis delivers two striking conclusions. First. we find that U.S. personal bankruptcy law is an important barrier that prevents the public insurance system from improving welfare. Second, contrary to popular belief, we find that increases in the generosity of public insurance will lead to more, not less, bankruptcy. (c) 2006 Elsevier B.V. All rights reserved.