Center for Law and Economic Studies
This essay surveys important contributions to the economics of bankruptcy. It is an introductory chapter for a forthcoming volume (from Edward Elgar Press) that compiles the work of legal scholars as well as economists working in the field of corporate finance. The essay begins with the foundational theories of Baird, Jackson, and Rea and then collects scholarly work extending, testing, or revising those theories. At various points I identify questions that merit further study, particularly empirical testing.
Edward R. Morrison,
The Economics of Bankruptcy: An Introduction to the Literature,
Economics of Bankruptcy, Vol. 1, Edward R. Morrison, Ed., Edward Elgar Publishing, 2013; Columbia Law & Economics Working Paper No. 366
Available at: https://scholarship.law.columbia.edu/faculty_scholarship/2419