This paper is focused on receivables management and possibilities how to use available information technologies. The use of information technologies should make receivables management easier on one hand and on the other hand it makes the processes more efficient. Finally it decreases additional costs and losses connected with enforcing receivables when defaulting debts occur. The situation of u...

by Robert B. Avery Robert B. Avery is a professor in the Department of Consumer Economics and Housing at Cornell University and a research associate at the Federal Reserve Bank of Cleveland. The author gratefully acknowledges useful comments and suggestions from Rosemary Avery, Glenn Canner, Randall Eberts, George Galster, Mark Sniderman, and James Thomson. Fungya Huang provided helpful researc...

* We wish to thank Ignacio Esponda, Igal Hendel, and Jon Levin for comments. Einav gratefully acknowledges financial support from the National Science Foundation and the hospitality of the Hoover Institution. Nevo gratefully acknowledges financial support from the National Science Foundation and the Sloan Foundation. By Liran Einav Stanford University and NBER and Aviv Nevo Northwestern Univers...

This paper studies contagion and market freezes caused by uncertainty in financial network structures and provides theoretical guidance for central banks. We establish a formal model to demonstrate that, in a financial system where financial institutions are interconnected, a negative shock to an individual financial institution could spread to other institutions, causing market freezes because...