We develop an inventory model to determine optimal ordering policy under permissible delay in payment by considering demand rate to be stock dependent. Mathematical models are derived under two different cases: credit period being greater than or equal to cycle time for settling the account, and credit period being less than or equal to cycle time for settling the account. The results are illus...

Do borrowers demand less credit from banks with weak balance sheets, following monetary policy shocks? To answer this, we use novel bank-specific survey data matched sheet information for euro area banks. We find that, a shock, bank strength influences as well supply. Bank resilience is important firms when selecting lender and it therefore vital to control identifying supply shocks. An applica...

Using a unique panel data set from a U.K. credit card company, we analyze the interest rate sensitivity of subprime credit card borrowers. In addition to all individual transactions and loan terms, we have access to details of a randomized interest rate experiment conducted by the lender on existing (inframarginal) loans. For the whole sample, we estimate a statistically significant £3.4 reduct...

This paper examines the demand for import documentary credit in Lebanon. Five explanatory variables are selected that stand respectively for risk, price, size, conjecture, and availability of credit. As expected, the long run elasticities are significantly higher than the short run ones. Risk has an adverse impact. Interest rate elasticities, or price elasticities, are all negative and statisti...

The purpose of the paper is to formulate two uncooperative replenishment models with demand and default risk which are the functions of the trade credit period, i.e., a Nash equilibrium model and a supplier-Stackelberg model. Firstly, we present the optimal results of decentralized decision and centralized decision without trade credit. Secondly, we derive the existence and uniqueness condition...

2 Model Designs 3 2.1 The Base Macro-economic Model . . . . . . . . . . . . . . . . 4 2.2 The Demand For Credit . . . . . . . . . . . . . . . . . . . . . 4 2.2.1 Fixed Investment . . . . . . . . . . . . . . . . . . . . . 5 2.2.2 Residential Investment . . . . . . . . . . . . . . . . . . 6 2.2.3 Consumption . . . . . . . . . . . . . . . . . . . . . . . 8 2.3 The Supply of Credit . . . . . . . . ...