The Effect of Bankruptcy Laws on the Valuation of Risky Consumer Debt
研究了在完全信息市场中，消费者如何通过抵押品和承诺支付决策影响其风险债务的价格，并分析了破产法对借贷双方消费机会的影响，以确定双边债务市场完全竞争的必要条件。
Abstract In a market setting with perfect information, a consumer recognizes that he can influence the state‐contingent returns, and hence the pric, of his risky debt by the decision variables that determine the collateral and promised payments. This paper examines the effect of bankruptcy laws on the feasible consumption opportunities of borrowers and lenders in order to determine the necessary requirements for the bilateral debt market to be perfectly competitive.