Because of delays to input payments, production linkages coincide with trade credit linkages. This paper investigates how these interconnected production and financial linkages of firms propagate shocks upstream and downstream in an input-output model. Theoretically, I obtain that financial frictions in trade and financial linkages of firms are necessary features for generating strong upstream ...

In his landmark 1961 article, Some Thoughts on Risk Distribution and the Law of Torts, Judge Calabresi provides a theoretical framework for analyzing tort liability as a risk-spreading device that functions in a manner similar to insurance. In our article, we examine the insurance objective of tort liability from the standpoint of modern tort law. Since Calabresi’s foundational article, there h...

Introduction. The crisis state of the domestic economy and a number other factors require enterprises levels management to take prompt drastic measures aimed at increasing level management. One promising proven directions for efficiency is increase qualitative growth accounting system internal control system. most important difficult areas work (determining final results financial economic acti...

Why do firms and banks hold foreign currency denominated liabilities? In this paper, we argue that foreign currency debt, by altering the effect of a devaluation on output, has a disciplining effect when the Central Bank’s objectives differ from the social optimum. However, under imperfect information, bad priors about the Central Bank induce excess dollarization of liabilities, which in turn l...