Plausibly Exogenous - Busy Courts (09/03/2021)
LHS Variable
Credit spreads
RHS Variable
Court congestion
Source of Exogenous Variation
2005 consumer bankruptcy reform, which caused the largest recorded drop in the caseload of bankruptcy courts in the United States by changing the law for individual debtors but left corporate bankruptcies unaffected
- Müller (2020), “Busy bankruptcy courts and the cost of credit”