Working Paper

Absolute priority rule violations, credit rationing, and efficiency


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

Keywords: Bankruptcy; Credit;

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File(s): https://doi.org/10.26509/frbc-wp-199710
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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 1997

Number: 9710