The study, aimed at evaluating the likely effects of the EC Directive on late payments, provides direct evidence that interfirm credit received by Italian manufacturing firms is, if ever, only slightly more expensive than bank loans. An econometric exercise shows that financial determinants have a stronger impact on recorded credit and debt periods for larger firms, able to use trade credit to ...

We investigate the interaction between labour and credit market imperfections for the determination of equilibrium unemployment within the framework of the "right-tomanage" approach. Our analysis highlights the critical role of labour mobility for the evaluation of the employment implications of intensified credit market competition. Without labour mobility increased bargaining power of banks w...

The traditional inventory of the economic order quantity model assumes perfect items in an ordered lot and an infinite replenishment rate. However, such conditions are rare in actual production environments. Additionally, most studies of this problem have only considered suppliers offering the wholesaler a grace period. In practice, wholesalers often extend a fixed credit period to downstream c...

Email: [email protected] Abstract: Many researchers have assumed one stage trade credit financing. In this study, we considered two levels of trade credit policy using Discounted Cash Flow (DCF) approach. Demand rate is considered to be stock-dependent for the first level (credit demand) and constant for second level (cash demand). Mathematical models are derived under two differen...

We determine how the U.S. ethanol tax credit and import tariff affect the corn-ethanol-gasoline markets and how farm subsidies interact with these policies. We show how the ethanol tax credit and import tariff each uniquely affect the ethanol and gasoline prices. The ethanol import tariff alone increases the terms of trade in ethanol imports and corn exports, but decreases the terms of trade in...

Recent evidence suggests that despite opening up a country for trade, the productivity gap between developed and emerging economies often does not close. This paper examines credit constraints as one channel held responsible for hampering convergence. Specifically, we extend a Melitz and Ottaviano (2008) type trade model with variable mark-ups to allow for endogenous technology adoption. We con...

and Applied Analysis 3 Table 1: Comparison between the papers discussing integrated inventory model with a trade credit. Author s Demand rate Production rate Production/purchase cost Freight rate Wholesale price Abad and Jaggi 39 Retail price sensitive Constant Constant — Constant Jaber and Osman 40 Constant — — — Constant Yang and Wee 41 Retail price sensitive — Constant — Constant Sheen and T...

A general theory is developed to analyze the efficiency and income distribution effects of a biofuel consumer tax credit and the interaction effects with a price contingent farm subsidy. Using the U.S. ethanol market as a stylized example, ethanol prices rise above the gasoline price by the amount of the tax credit. Corn farmers therefore gain directly while gasoline consumers only gain from an...

We explore the consequences of international trade in an economy that encompasses technology choice and an endogenous distribution of mark-ups due to credit market frictions. We show that in such an environment a gradual opening of trade may —but not necessarily must —have a negative impact on productivity and overall output. The reason is that the pro-competitive effects of trade reduce mark-u...

Recently, some credit card companies have introduced limiteduse credit card numbers—for example, American Express’s single-use card numbers and Visa’s gift cards. Such limited-use credit cards limit the exposure of a traditional long-term credit card number, particularly in Internet transactions. These offerings employ an on-line solution, in that a credit card holder must interact with the cre...