قوانین معافیت و بزهکاری مصرف کننده و رفتار ورشکستگی: تجزیه و تحلیل تجربی از اطلاعات کارت اعتباری

In this paper, we examine how homestead, personal property, and garnishment exemption laws affect consumer’s delinquency and bankruptcy behavior by focusing on the credit card market. In particular, after controlling for credit supply and shock effects like unemployment we investigate whether consumer propensity for delinquency, formal bankruptcy, and informal bankruptcy changes with respect to the exemption levels those resident cardholders enjoy. Our results show that loose garnishment and property exemption laws increase delinquency. Furthermore, while loose garnishment and property exemption laws encourage informal bankruptcy, loose homestead and property exemption laws encourage formal bankruptcy. These results imply a certain degree of substitutability between formal and informal bankruptcy.