How much should debtors be punished in case of default?

No 41, Fucape Working Papers from Fucape Business School

Abstract: This study investigates the relationship between debtor punishment and the development of the credit market. We empirically analyze how the level of debtor punishment relates to the credit market expansion. We find evidence that an increase in debtor punishment tends to produce a positive effect on credit markets for states with low level of punishment and a negative effect for states with high level of punishment. Hence, there is an intermediate level of debtor punishment that maximizes the size of the personal credit market. This intermediate level accounts for the need of creditors' protection to reduce moral hazard, to encourage the supply of credit, and for the need to protect borrowers from a bad state of nature

Keywords: Credit; bankruptcy; regulation and business law; personal bankruptcy law (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013-10
New Economics Papers: this item is included in nep-ban and nep-law
References: Add references at CitEc
Citations:

Published in Fucape Working Papers, Outubro 2013

Downloads: (external link)
http://www.fucape.br/_public/workingpapers/41-2013.pdf Primeira Versão, 2013 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fucape.br/_public/workingpapers/41-2013.pdf [301 Moved Permanently]--> https://www.fucape.br/_public/workingpapers/41-2013.pdf [301 Moved Permanently]--> https://fucape.br/_public/workingpapers/41-2013.pdf)

Related works:
Journal Article: How Much Should Debtors be Punished in Case of Default? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bbz:fcpwps:41

Access Statistics for this paper

More papers in Fucape Working Papers from Fucape Business School Fucape Business School Brazilian Business Review Av. Fernando Ferrari, 1358, Boa Vista CEP 29075-505 Vitória-ES. Contact information at EDIRC.
Bibliographic data for series maintained by Adriana Gasparino ( this e-mail address is bad, please contact ).