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Borrowing constraints, non-homothetic preferences, and trade

✍ Scribed by Shinji Teraji


Book ID
114361690
Publisher
Elsevier Science
Year
2003
Tongue
English
Weight
184 KB
Volume
57
Category
Article
ISSN
1090-9443

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## Abstract Monetary policy contractions exacerbate credit constraints stemming from asymmetric information, incentive problems and limited collateral. During such periods financial intermediaries reduce the supply of credit to smaller businesses. Although trade credit is a less desirable alternati