New academic article by Carolyn Abbott and Akheil Singla, abstract includes “Local governments facing extreme fiscal stress have few options. … bankruptcy can provide a financial fresh start for local governments. This research leverages six municipal bankruptcies in the years immediately following The Great Recession to explore the effects of bankruptcy on local government financial health. … The results show that bankruptcy is associated with no declines and some meaningful improvements in financial health. These findings suggest that Chapter 9 bankruptcy may provide extremely stressed local governments with a potential path forward.”
Read the full article on: Public Administration Review