The Financial Consequences of Pretrial Detention
In the United States, a significant number of criminal defendants are held in pretrial detention and face substantial financial burdens. Matching individual-level criminal case records to household-level financial data, we exploit the quasi-random assignment of court commissioners to study how pretrial detention affects household solvency. We find that pretrial detention results in higher rates of household insolvency, driven by higher rates of Chapter 7 bankruptcies and judgment liens, and higher foreclosure rates during periods of decreasing house prices.
Study Examines Economic Consequences for Pretrial-Detainee Households
Pretrial detention often imposes severe financial burdens on defendants and their households, increasing bankruptcy, foreclosure and insolvency rates, especially during housing downturns. Research by Pablo Slutzky, assistant professor of finance at the University of Maryland’s Smith School, highlights the systemic link between monetary bail, poverty cycles and criminal justice reform.
Benchmarking ESG in Banking Fundamentally Insufficient, Study Shows
Recent research by Pablo Slutzky from the University of Maryland's Robert H. Smith School of Business suggests that targeted credit rationing by banks, akin to Operation Choke Point, fails to significantly impact firms' operations, raising questions about the effectiveness of ESG strategies in curbing controversial practices.
How Mafia Crackdowns Drive Competition and Innovation in Local Economies
The Italian Mafia is synonymous with organized crime and some of the country’s most powerful groups wield fearsome power across the world. Their strongholds start at the municipal level. Pablo Slutzky, a finance assistant professor at the Smith School of Business, studies how the mafia’s presence impacts local economies.
The Trouble With Being Public in Emerging Markets
You'd think the world’s major multinational, publicly traded firms might have an advantage across the developing world over privately owned rivals. Not so, according to new research. And the reason why is a bit surprising.