Bankruptcy: is it enough to forgive or must we also forget?

Ronel Elul and Piero Gottardi

No 11-14, Working Papers from Federal Reserve Bank of Philadelphia

Abstract: In many countries, lenders are restricted in their access to information about borrowers' past defaults. The authors study this provision in a model of repeated borrowing and lending with moral hazard and adverse selection. They analyze its effects on borrowers' incentives and access to credit, and identify conditions under which it is optimal. The authors argue that ?forgetting? must be the outcome of a regulatory intervention by the government. Their model's predictions are consistent with the cross-country relationship between credit bureau regulations and the provision of credit, as well as the evidence on the impact of these regulations on borrowers' and lenders' behavior.

Keywords: Bankruptcy (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-ban, nep-cta and nep-reg
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Bankruptcy: Is It Enough to Forgive or Must We Also Forget? (2015)
Working Paper: Bankruptcy: Is it enough to Forgive or must we also Forget? (2008)
Working Paper: Bankruptcy: Is It Enough to Forgive or Must We Also Forget? (2008)
Working Paper: Bankruptcy: Is it enough to forgive or must we also forget? (2007)
Working Paper: Bankruptcy: Is It Enough to Forgive or Must we Also Forget? (2007)
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