Abstract
Jonathan Fisher (2002) "Duration Dependence in
Personal Bankruptcy."
This paper represents the first use of the Panel Study of Income
Dynamics to examine whether there is duration dependence in personal
bankruptcy. The results suggest that there is positive duration
dependence in the first three spell-years, followed by negative duration
dependence. Another interesting finding is that the median financial
benefit for the filers in the year they filed is less than the median
benefit in the year before they filed. This indicates that not all
households file for bankruptcy when its financial benefit is largest.
These findings suggest that some filers avoid bankruptcy even when
bankruptcy is financially beneficial.
Last Modified Date: July 19, 2008
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