Fundacao Getulio Vargas

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  • White Papers // Apr 2009

    Interest Rates In Trade Credit Markets

    Despite strong evidence that suppliers of inputs are usually informed lenders, the cost of trade credit rarely varies with borrowing firm characteristics. The authors solve this puzzle by demonstrating that it is optimal for suppliers to keep riskier firms indifferent between trade credit and loans from uninformed banks. Because these...

    Provided By Fundacao Getulio Vargas

  • White Papers // Apr 2009

    Interest Rates In Trade Credit Markets

    Despite strong evidence that suppliers of inputs are usually informed lenders, the cost of trade credit rarely varies with borrowing firm characteristics. The authors solve this puzzle by demonstrating that it is optimal for suppliers to keep riskier firms indifferent between trade credit and loans from uninformed banks. Because these...

    Provided By Fundacao Getulio Vargas