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factors, such as productivity uncertainty, debt readjustment, liquidity constraints, and leverage level, to explain the …
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Credit rationing and the use of collateral are widely observed in debt financing. To our view there is yet no … appropriate theoretical explanation for these facts. In the standard debt financing models the occurrence of credit rationing can … collateral is limited. In our model we show that credit rationing and the use of collateral are always necessary for debt …
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