Publication Date

4-1995

Journal

Minnesota Law Review

Abstract

The article presents an economic theory of debt collection, arguing that it can be viewed as a form of rent-seeking behavior where creditors extract wealth without adding economic value. The author, David Gray Carlson, posits that legal frameworks such as Article 9 of the Uniform Commercial Code and bankruptcy laws are crucial in preventing local monopolies and promoting a competitive national credit market. These mechanisms reduce information asymmetry and prevent local creditors from exploiting debtors, thereby benefiting debtors and fostering economic efficiency.

Volume

79

Issue

3 & 4

First Page

817

Last Page

852

Publisher

University of Minnesota Law School

Disciplines

Law | Law and Economics

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