New evidence of spillovers in personal bankruptcy using point-coded data

Jess Grana and Mary Eschelbach Hansen

Spatial Economic Analysis, 2019, vol. 14, issue 4, 446-464

Abstract: Bankruptcy spillovers are said to occur when a household’s decision to file for bankruptcy is influenced by the filings of neighbours. This paper argues that spillovers are best captured by measuring the extent to which spatial and temporal lags of filings affect current filings in small geographical regions. It uses the geocoded exact addresses of all debtors who filed in the state of Maryland between 1949 and 1973. An additional bankruptcy last year increases bankruptcies this year by as much as 7%. The effect is largest for small distances and short lags. Moreover, close neighbours are more likely to share an attorney. These results suggest that interpersonal exchange of information is the dominant mechanism of transmission.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/17421772.2019.1636128 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:specan:v:14:y:2019:i:4:p:446-464

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RSEA20

DOI: 10.1080/17421772.2019.1636128

Access Statistics for this article

Spatial Economic Analysis is currently edited by Bernie Fingleton and Danilo Igliori

More articles in Spatial Economic Analysis from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().