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Absolute priority rule violations, credit rationing, and efficiency

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  • Stanley D. Longhofer

Abstract

A demonstration that violations of the absolute priority rule exacerbate credit rationing problems by reducing the payment lenders receive in default states.

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  • Stanley D. Longhofer, 1997. "Absolute priority rule violations, credit rationing, and efficiency," Working Papers (Old Series) 9710, Federal Reserve Bank of Cleveland.
  • Handle: RePEc:fip:fedcwp:9710
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    Citations

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    Cited by:

    1. Stanley D. Longhofer & Stephen R. Peters, 2000. "Protection for whom? creditor conflicts in bankruptcy," Working Papers (Old Series) 9909R, Federal Reserve Bank of Cleveland.
    2. Wei Fan & Michelle J. White, 2001. "Personal Bankruptcy and the Level of Entrepreneurial Activity," Center for Financial Institutions Working Papers 01-11, Wharton School Center for Financial Institutions, University of Pennsylvania.
    3. Jeremy Berkowitz & Michelle J. White, 2002. "Bankruptcy and Small Firms' Access to Credit," NBER Working Papers 9010, National Bureau of Economic Research, Inc.
    4. Wang, Hung-Jen, 2000. "Symmetrical Information and Credit Rationing: Graphical Demonstrations," MPRA Paper 31078, University Library of Munich, Germany, revised 08 Feb 2005.
    5. Chopard, Bertrand & Langlais, Eric, 2009. "Défaut de paiement stratégique et loi sur les défaillances d'entreprises [Strategic default and bankruptcy law]," MPRA Paper 14366, University Library of Munich, Germany.
    6. Wei Fan & Michelle J. White, 2002. "Personal Bankruptcy and the Level of Entrepreneurial Activity," NBER Working Papers 9340, National Bureau of Economic Research, Inc.
    7. Fan, Wei & White, Michelle J, 2003. "Personal Bankruptcy and the Level of Entrepreneurial Activity," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 543-567, October.
    8. Michelle J. White, 2005. "Economic Analysis of Corporate and Personal Bankruptcy Law," NBER Working Papers 11536, National Bureau of Economic Research, Inc.
    9. Alan Schwartz, "undated". "A Normative Theory of Business Bankruptcy," American Law & Economics Association Annual Meetings 1037, American Law & Economics Association.
    10. Matej Marinc & Razvan Vlahu, 2011. "The Economic Perspective of Bank Bankruptcy Law," DNB Working Papers 310, Netherlands Central Bank, Research Department.
    11. Allen B. Frankel, 1998. "Issues in financial institution capital in emerging market economies," Economic Policy Review, Federal Reserve Bank of New York, vol. 4(Oct), pages 213-223.

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