The use of trade credit as a short-term financing is increasing in the last years; large firms use more days to pay small firms than they need, which causes financial fatal consequences to suppliers. These financial problems are not new, but with the credit crunch they are coming up because the massive use of the trade credit impacts negatively on suppliers whose insolvency and bankruptcy risks...

S routinely sell goods to retailers on credit. Common credit terms are tantamount to a schedule of declining discounts (escalating penalties) that depend on how long the retailer takes to pay off the supplier’s loan. However, issues such as which stocking policies are optimal in the presence of supplier-provided credit have been investigated only when demand is assumed deterministic. Nearly all...

Financial liberalization policies have significantly altered the structure of rural credit markets and the terms of household access to them throughout Latin America. This paper has two main objectives. First, it uses household survey data from northern Peru to fill an empirical void by presenting a detailed description of the terms of formal and informal credit contracts and the frequency of n...

It is well known that for Markov decision processes, the policies stable under policy iteration and the standard reinforcement learning methods are exactly the optimal policies. In this paper, we investigate the conditions for policy stability in the more general situation when the Markov property cannot be assumed. We show that for a general class of non-Markov decision processes, if actual re...

In this paper, we consider a supply chain which consists of a single manufacturer and a single retailer with a single product type. Demand is assumed to be dependent on the retailer's stock level. Without coordination, the retailer determines its order quantity to maximize its own profit, which is usually smaller than the manufacturer's economic production quantity. Three coordination policies ...

Research background: Excessive credit expansions have an important role in the generation and amplification of business cycles emerging market (EM) economies. Macroprudential policies can be beneficial restraining excessive growth safeguarding financial stability. Despite recent theoretical advances understanding benefits macroprudential policies, empirical evidence on their effect cycle is sti...

This study evaluates the nexus of enterprise value and trade-credit strategies. Fixed-effects modeling is used for baseline outcomes, a difference-in-difference approach applied as quasi-natural experiment. The estimates are robust to alternative measures distant covariates. findings validate that has positive (negative) impact on (supplies), (demand). said effect more pronounced in SOEs, revea...