Does Bankruptcy Protection Affect Asset Prices? Evidence from changes in Homestead Exemptions

• Tác giả: Yildiray Yildirim, Albert Alex Zevelev
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.75 Insolvency and credit restrictions
• Thông tin xuất bản: 2021
• Bộ sưu tập: Báo, Tạp chí
• ID: 166377

Tóm tắt

Does the ability to protect an asset from unsecured creditors affect its price? This paper identifies the impact of bankruptcy protection on house prices using 139 changes in homestead exemptions. Large increases in the homestead exemption raised house prices 3% before 2005. Smaller exemption increases, to adjust for inflation, did not affect house prices. The effect disappeared after BAPCPA, a 2005 federal law designed to prevent bankruptcy abuse. The effect was bigger in inelastic locations.