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Trade credit, collateral liquidation, and borrowing constraints

✍ Scribed by Daniela Fabbri; Anna Maria C. Menichini


Book ID
113711222
Publisher
Elsevier Science
Year
2010
Tongue
English
Weight
654 KB
Volume
96
Category
Article
ISSN
0304-405X

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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