Jailing Debtors
Author: Asher Meir Policy Research

In this Taub Center study it was found that the effect of possible imprisonment for bad debts on the level and accessibility of credit is negligible.

In contrast, the harm to consumers is great and there is evidence that imprisoning debtors and the various negative sanctions against them depress demand for credit.  In the opinion of Dr. Meir, complete abolition of the policy of imprisonment for normal debts is likely to improve the functioning of the credit market for consumers in Israel.

 

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