The Financial Consequences of Pretrial Detention

• 成果类型: Article; Early Access
• 署名作者: Slutzky, Pablo; Xu, Sheng-Jun
• 署名单位: University System of Maryland; University of Maryland College Park; University of Alberta
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhaf009
• 发表日期: 2025
• 关键词: PAYDAY LOANS; Foreclosures; INEQUALITY; liquidity; IMPACT; crime

摘要

In the United States, a significant number of criminal defendants are held in pretrial detention and face substantial financial burdens. Matching individual-level criminal case records to household-level financial data, we exploit the quasi-random assignment of court commissioners to study how pretrial detention affects household solvency. We find that pretrial detention results in higher rates of household insolvency, driven by higher rates of chapter 7 bankruptcies and judgment liens, and higher foreclosure rates during periods of decreasing house prices. We document that the effects spill over to family members and show that home equity can cushion households from insolvency.