The Economics of Bankruptcy: An Introduction to the Literature

32 Pages Posted: 2 Feb 2010 Last revised: 30 Sep 2016

Date Written: December 30, 2009


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.

Keywords: Bankruptcy, corporate reorganization, corporate finance, literature review

JEL Classification: D14, D18, D86, D91, G30, G32, G33, G34, K00, K22, K29, K35, L11, L93

Suggested Citation

Morrison, Edward R., The Economics of Bankruptcy: An Introduction to the Literature (December 30, 2009). Columbia Law and Economics Working Paper No. 366, Available at SSRN: or

Edward R. Morrison (Contact Author)

Columbia Law School ( email )

435 West 116th Street
New York, NY 10025
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics