Trade credit in a monetary economy

This paper examines the importance of financial and technological stochastic trends in the context of a stochastic, dynamic, general equilibrium monetary economy with multiple means of payment. In contrast to earlier empirical work, we find support for both a long-run substitution condition between...

Full description

Saved in:
Bibliographic Details
Published in:Journal of monetary economics 1995-06, Vol.35 (3), p.413-430
Main Authors: Norrbin, Stefan C., Reffett, Kevin L.
Format: Article
Language:English
Subjects:
Canonical cointegrating regression
Credit
Economic models
General economic equilibrium
General equilibrium
International trade
Monetary economics
Monetary theory
Multiple means of payment models
Payments
Regression analysis
Stochastic processes
Stochastic trends
Studies
Trade
Trade credit
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper examines the importance of financial and technological stochastic trends in the context of a stochastic, dynamic, general equilibrium monetary economy with multiple means of payment. In contrast to earlier empirical work, we find support for both a long-run substitution condition between money, trade credit, and interest rates as well as a long-run transactions demand for alternative payments media consistent with real business cycle frameworks.
ISSN:0304-3932
1873-1295
DOI:10.1016/0304-3932(95)01202-Y