TY - JOUR
AU - 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 -