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Legal vs economic explanations of the rise in bankruptcies in XIXth century France

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  • Pierre-Cyrille Hautcoeur
  • Nadine Levratto

Abstract

This paper aims at giving an explanation of the changes in the number of bankruptcies during the second part of the 19th century and the beginning of the 20th. We firstly study the evolution of the French insolvency law and then we introduce some regional aspects. We indeed observe that the court of the District of the Seine is more tolerant than the others; however this kind of use of the law will spread in the other courts until the reform in 1889 that creates the judicial liquidation. The special analysis permits us to show that the changes in the law do not explain the total variations of the total amount of bankruptcies. The local practices and, thus, the way the judicial agents act are also essential in the explanation.

Suggested Citation

  • Pierre-Cyrille Hautcoeur & Nadine Levratto, 2007. "Legal vs economic explanations of the rise in bankruptcies in XIXth century France," EconomiX Working Papers 2007-35, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2007-35
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    References listed on IDEAS

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    1. Philippe Aghion & Oliver D. Hart & John Moore, 1994. "The Economics of Bankruptcy Reform," NBER Chapters, in: The Transition in Eastern Europe, Volume 2, Restructuring, pages 215-244, National Bureau of Economic Research, Inc.
    2. Hart, Oliver & La Porta Drago, Rafael & Lopez-de-Silanes, Florencio & Moore, John, 1997. "A new bankruptcy procedure that uses multiple auctions," European Economic Review, Elsevier, vol. 41(3-5), pages 461-473, April.
    3. Rajan, Raghuram G. & Zingales, Luigi, 2003. "The great reversals: the politics of financial development in the twentieth century," Journal of Financial Economics, Elsevier, vol. 69(1), pages 5-50, July.
    4. repec:cep:stitep:/1992/250 is not listed on IDEAS
    5. Paolo Di Martino, 2005. "Approaching Disaster: Personal Bankruptcy Legislation in Italy and England, c.1880-1939," Business History, Taylor & Francis Journals, vol. 47(1), pages 23-43.
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    Keywords

    Bankruptcy; Code de commerce; 19th century;
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