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Consumer bankruptcy filing rates have soared during the past 25 years. From 225,000 filings in 1979, consumer bankruptcies topped 1.5 million during 2004. This relentless upward trend is striking in light of the generally high prosperity, low interest rates, and low unemployment during that period. This anomaly of ever-upward bankruptcy filing rates during a period of economic prosperity had spurred calls to reform the Bankruptcy Code to place new conditions on bankruptcy relief. Although bankruptcy reform has drawn broad bipartisan support on Capitol Hill, these proposals have proven controversial within the academy. Critics have argued that these reforms are unnecessary and punitive, and that private market adjustments such as higher interest rates and more restrictive credit rationing are suitable policy responses.Scholars have previously identified two models of the consumer bankruptcy process, the traditional "distress" model and the economic "incentives" model. Neither, however, can explain the observed bankruptcy filing patterns of recent decades. This article offers a new model of consumer bankruptcy rooted in New Institutional Economics that explains the rise in consumer bankruptcy filings as reflecting changes in the institutions, incentives, and constraints surrounding the consumer bankruptcy filing decision. It is argued that this new model of consumer bankruptcy is both theoretically and empirically superior to the traditional model. This article identifies three institutional factors that can explain the observed rise in bankruptcy filings over the past several decades: (1) A change in the relative economic costs and benefits associated with filing bankruptcy; (2) A change in social norms regarding bankruptcy; and (3) Changes in the nature of consumer credit, toward more national and impersonal forms of consumer credit. It is argued that all of these factors tend to increase the incentives for filing bankruptcy or reduce the constraints imposed on filing bankruptcy. The result has been to increase the equilibrium level of bankruptcy filings in America.Finally, the article briefly discusses some policy implications of the model presented here, focusing most specifically on the proposals contained in the Bankruptcy Reform Act that Congress is again considering, but also addressing more farreaching proposals, such efforts to reverse changes in social norms or proposals to allow contracting-around the mandatory discharge provision of current law. INSTITUTIONS, INCENTIVES ABSTRACTConsumer bankruptcy filing rates have soared during the past 25 years. From 225,000 filings in 1979, consumer bankruptcies topped 1.5 million during 2004. This relentless upward trend is striking in light of the generally high prosperity, low interest rates, and low unemployment during that period. This anomaly of ever-upward bankruptcy filing rates during a period of economic prosperity had spurred calls to reform the Bankruptcy Code to place new conditions on bankruptcy relief. Although bankruptcy reform has drawn br...

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Obesity and Advertising Policy Todd J. Zywicki, Debra Holt, and Maureen Ohlhausen AbstractIt is clear that Americans are getting fatter, both adults and children. This development has led some to call for a ban on food advertising directed at children. There are numerous practical and constitutional difficulties with such a policy. This article poses a more fundamental question -even if feasible, would restricting food advertising do anything to reduce obesity or even slow its trends? The article also considers whether the social costs of banning advertising could outweigh the social benefits of such an action.This article provides a review of the literature on the fundamental causes of the American obesity problem as well as the purported contribution of children's advertising to the problem. The final conclusion is inescapable -the available evidence does not support the theory that children's exposure to food advertising has significantly contributed to increased children's obesity. Although children's obesity rates have skyrocketed during the past two decades, the available evidence indicates that children's exposure to food advertising has remained constant or has even declined during that same period.This article first describes the existing theories and empirical evidence regarding the causal factors in the American obesity problem. Second, the article examines in detail the claim that the rise in children's obesity has been caused in whole or in part by food advertising directed at children. Available evidence and observations regarding the exposure of children to food advertising fail to support the hypothesis that increased food advertising directed at children has significantly contributed to the rise in childhood obesity. As a result, there is also little reason to believe that greater restrictions on advertising directed at children will do much at all to staunch the increase in children's obesity. Third, the article reviews the existing literature on the positive effects that advertising can have on increasing consumer knowledge and choice. Thus, even though there is little evidence that advertising is the cause of the obesity problem, it is likely that advertising can play a positive role in being part of the solution to obesity by providing more information to consumers and by providing incentives to create and market healthier food alternatives. American obesity problem as well as the purported contribution of children=s advertising to the problem. The final conclusion is inescapable B the available evidence does not support the theory that children=s exposure to food advertising has significantly contributed to increased children=s obesity. Although children=s obesity rates have skyrocketed during the past two decades, the available evidence indicates that children=s exposure to food advertising has remained constant or has even declined during that same period. 1 OBESITYThis article first describes the existing theories and empirical evidence regarding the causal factors in the American obesi...

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Efficiency of common law, Legal history, Monopolization of law, K40, N43, P48,