Márcia Lima Bandeira E-mail address: [email protected] Escola de Administração de Empresas de São Paulo/Fundação Getulio Vargas São Paulo, SP, Brazil. ABSTRACT While trade credit may be used as a substitute for bank loans, we find empirical evidence that listed firms do use bank debt and trade credit as two complementary sources of financing in line with recent theoretical papers (e.g...

Farm households in developing countries are generally credit constrained. This forces them to simultaneously take production and consumption decisions. In this paper, a two-period lifecycle model of the farm household is constructed and the household’s investment response to changes in land and agricultural output prices are derived theoretically. It is shown that in the absence of credit marke...

We study the sensitivity of banks’ credit supply to small and medium size enterprises (SMEs) in the UK to banks’ financial condition before and during the financial crisis. Employing unique data on the geographical location of all bank branches in the UK, we connect firms’ access to bank credit to the financial condition (i.e., bank health and the use of core deposits) of all bank branches in t...

We study the sensitivity of banks’ credit supply to small and medium size enterprises (SMEs) in the UK to banks’ financial condition before and during the financial crisis. Employing unique data on the geographical location of all bank branches in the UK, we connect firms’ access to bank credit to the financial condition (i.e., bank health and the use of core deposits) of all bank branches in t...

We quantify the effects of lending and balance sheet channels on corporate investment during large crises in emerging markets. The depreciated currency creates investment opportunities in the tradable sector but firms might be financially constrained due to: 1) a deterioration of their balance sheet via un-hedged foreign currency debt (balance sheet channel) and 2) a decline in the supply of cr...

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This study was inspired by the persistence and strength of character of striving entrepreneurs in rural communities who strive to establish or let grow of their businesses. The Second Vatican Council of the Catholic Church considered Basic Ecclesial Community (BEC) as a “New Way of Renewing the Church”, thus the researcher collaborates with Caritas Diocese of Libmanan (Inc.), the social action ...

We demonstrate, using a simple two-period equilibrium model of the economy, the potential effects of extreme event occurrences such as natural or humanitarian disasters on economic growth over the mediumto long-term. In particular, we focus on the effect of such shocks on investment. We examine two polar cases; an unconstrained economy where agents have access to perfect capital markets, versus...

Agriculture plays a crucial role in the development of the Indian economy. It accounts for about 19 percent of GDP and about two thirds of the population is dependent on the sector. (Economic Survey, 2009). Recognizing the importance of agriculture sector in India’s development, the Government and the Reserve Bank of India (RBI) have played a vital role in creating a broad-based institutional f...

Although a growing theoretical literature points to credit constraints as an important source of inefficiently high child labor, little work has been done to assess its empirical relevance. Using panel data from Tanzania, we find that households respond to transitory income shocks by increasing child labor, but that the extent to which child labor is used as a buffer is lower when households ha...