Plausibly Exogenous [1950] - Public Externality (06/05/2025)

LHS Variable
Public externalities

RHS Variable
Bankruptcy law

Source of Exogenous Variation
In 2009, the Seventh Circuit ruled in U.S. v. Apex Oil that certain types of injunctions requiring firms to clean up previously released toxic chemicals were not dischargeable in bankruptcy

- Ohlrogge (2024), “Bankruptcy claim dischargeability and public externalities: Evidence from a natural experiment”