In this paper, we have considered an economic order quantity model for deteriorating items with two-level trade credit policy in which a delay in payment is offered by a supplier to a retailer and also an another delay in payment is offered by the retailer to his/her all customers. Here, it is proposed that the demand function is dependent on the length of the customer's credit period and also ...

The importance of disturbances in financial markets for real economic activity and the positive association between price level and output movements typically are explained by appeal to a combination of nominal aggregate demand shocks (particularly money-supply shocks) and rigid prices. We argue that this view is inconsistent with evidence for short-run responsiveness of prices and gold flows t...

We study the reaction of commercial banks to external macroeconomic shocks using panel data from over 120 banks in Argentina for the period 1996-1999. We show that all banks reduce lending when systemic risk increases and that this reaction is driven by credit supply decisions by banks, beyond and above the impact of reduced credit demand or increased regulatory pressure. However, the underlyin...

The paper considers the sustainable trade credit and inventory policies with demand related to credit period and the environmental sensitivity of consumers under the carbon cap-and-trade and carbon tax regulations. First, the decision models are constructed under three cases: without regulation, carbon cap-and-trade regulation, and carbon tax regulation. The optimal solutions of the retailer in...

This paper describes the evolution of the various information sharing mechanisms that have emerged in Mexico; it studies their evolution, regulation and market structure. Sharing mechanisms alleviate the effects of asymmetric information in the credit market. It is known that the development of the credit market and information sharing mechanisms are closely related. We show that in Mexico info...

We consider a set U of users connected in a social network GS = (U,F ), where the social link set F ⊂ U × U defines the friends relations between users. If user i treats j as his friend, i connects to j through a directed link 〈i, j〉 ∈ F . Suppose each user can provide some services, and also want to consume some services provided by other users. We can define a demand graph GD = (U,D), where D...

Customer investigations in the banking industry are carried out in connection with prosecutions, administration of estates or other legal actions. The Investigation & Inquiries department of Credit Suisse has to handle approximately 5000 customer investigations per year. So far, the investigation process was very complex time consuming and costly: to be on the safe-side, several redundant query...

We utilize a unique pair of experiments to study the precise ways in which reductions in asymmetric information alter the outcome in a credit market. We formulate a general model in which the information set held by lenders, and what borrowers believe their lenders to know, enter separately. This model illustrates that non-experimental identification of the supplyand demand-side information in ...

The paper presents and tests a theory of the demand for money that is derived from a general equilibrium, endogenous growth economy, which in e¤ect combines a special case of the shopping time exchange economy with the cash-in-advance framework. The model predicts that both higher in‡ation and …nancial innovation that reduces the cost of credit induce agents to substitute away from money toward...