In my research I investigate the phenomenon of corporate default, with a particular focus on the macroeconomic consequence of changes in the corporate bankruptcy law. In a first paper, I study the general equilibrium implications of changes in the corporate bankruptcy law in a firm dynamics model in which the default option replicates salient features of the U.S. Bankruptcy Code: distressed firms can voluntarily file either for liquidation (Chapter 7) or reorganization (Chapter 11). In a second paper I document a novel channel through which pro-creditor bankruptcy reforms can backfire when workers extract rents. In a third co-authored paper, I present a firm dynamic model where financial development account for a diverging trend between rising default rates and constant credit spreads that we document in the US data for the period 1980-2016.
