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This timely book surveys seminal contributions to the economics of bankruptcy. It offers a comprehensive compilation of work by both legal scholars and economists working in the fields of corporate and consumer finance beginning with Baird, Jackson and Rea before showcasing papers that extend, test and revise their theories. An original introduction, written by the editor, provides a commentary on the featured papers and also points to questions that merit further study. This collection is an indispensable source of reference for anyone interested in the economics of bankruptcy.