TY - JOUR AU1 - Jia, Ye (George) AB - I study the two competing effects of limited personal liability on entrepreneurship in a life‐cycle model: an insurance effect through debt relief in the event of business failure and a borrowing cost effect where the borrowing cost rises with default premiums. I first calibrate the model to the US economy by taking a simplified version of the US Chapter 7 bankruptcy code and then consider the effects of alternative regimes. I find that personal bankruptcy law affects entrepreneurship primarily by altering the decisions of agents with moderate entrepreneurial ability through the insurance effect rather than through the borrowing cost effect. TI - The impact of personal bankruptcy law on entrepreneurship JF - Canadian Journal of Economics/Revue Canadienne D'économique DO - 10.1111/caje.12133 DA - 2015-05-01 UR - https://www.deepdyve.com/lp/wiley/the-impact-of-personal-bankruptcy-law-on-entrepreneurship-QG0RYI8p7c SP - 464 EP - 493 VL - 48 IS - 2 DP - DeepDyve ER -