The Shipowner Becomes a Bankrupt

Dynamics of Bankrupt Stocks

In this thesis, we study the behavior of bankrupt stocks. Bankrupt stock is a special case of the Hard-to-Borrow stocks. Besides the general nice feature of the Hard-to-borrow feedback for the buy-in demand, the bankrupt stocks could exclude the diffusive effects. This nice property would modify the Marco Avellaneda and Mike Lipkin’s jump-diffusion model for the Hard-to-Borrow stocks into the p...

Commentary on "Is the United States Bankrupt?"

Kotlikoff scoffs at the use of government debt or budget deficits as a measure of fiscal solvency because these measures are highly sensitive to the labels one attaches to what the government takes in as revenues and what it pays out to its citizens. A country can run budget surpluses and have no debt and yet be broke. The paper therefore suggests relying on generational accounting to examine t...

A Firm Can Only Go Bankrupt Once

* Earlier versions of this paper have been presented at the Workshop " Organizational Encounters with Risk " at the London School of Economics (LSE) May 3-4, 2002 and the Risk Symposium " Formulating Policy to Deal with Contemporary Environmental Risks " at Ohio State University (OSU) on May 13, 2002. We appreciate the helpful comments by Jim Ament and Paul Kleindorfer as well as those particip...

Credit Supply to Bankrupt Households

The rate of households filing for personal bankruptcy soared in the past two decades, spurring extensive investigations on its causes and policy implications. Recent research suggests that the driving factor may be the sharp decrease in the cost of providing credit, especially unsecured credit cards, to the borrowers that would be not served by traditional lenders (e.g., Livshits, MacGee, and T...

Bankrupt Representation and Party System Collapse