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Personal-bankruptcy cycles

Thomas Garrett () and Howard Wall ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper estimates the dynamics of the personal-bankruptcy rate over the business cycle by exploiting large cross-state variation. We find that bankruptcy rates are significantly higher than normal during a recession and rise as a recession persists. After a recession ends, there is a hangover whereby bankruptcy rates begin to fall but remain above normal for several more quarters. Recovery periods see a strong bounce-back effect with bankruptcy rates significantly below normal for several quarters. Despite the significant increases in bankruptcies during recessions, the largest contributor to rising bankruptcies during these periods has tended to be the longstanding upward trend.

Keywords: Personal Bankruptcy; Recessions (search for similar items in EconPapers)
JEL-codes: E32 D14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2010-08-23
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https://mpra.ub.uni-muenchen.de/30759/1/MPRA_paper_30759.pdf original version (application/pdf)

Related works:
Journal Article: PERSONAL-BANKRUPTCY CYCLES (2014) Downloads
Working Paper: Personal-bankruptcy cycles (2010) Downloads
Working Paper: Personal-bankruptcy cycles (2010) Downloads
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