scholarly journals Trade Credit and Product Pricing: The Role of Implicit Interest Rates

2020 ◽  
Author(s):  
Niklas Amberg ◽  
Tor Jacobson ◽  
Erik von Schedvin
Keyword(s):  
Interest Rates ◽  
Trade Credit ◽  
Opportunity Costs ◽  
Price Setting ◽  
Firm Characteristics ◽  
Data Set ◽  
Transaction Prices ◽  
Financial Conditions ◽  
Product Pricing

Abstract We empirically investigate the proposition that firms charge premia on cash prices in transactions involving trade credit. Using a comprehensive panel data set on product-level transaction prices and firm characteristics, we relate trade credit issuance to price setting. In a recession characterized by tightened credit conditions, we find that prices increase significantly more on products sold by firms issuing more trade credit, in response to higher opportunity costs of liquidity and counterparty risks. Our results thus demonstrate the importance of trade credit for price setting and show that trade credit issuance induces a channel through which financial conditions affect prices.

Money and Household Consumption Expenditure in Developing Asia: Some Panel ARDL Evidence

2021 ◽  
pp. 001946622110624
Author(s):  
Ghanashyama Mahanty ◽  
Himanshu Sekhar Rout ◽  
Swayam Prava Mishra
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Household Consumption ◽  
Asia Pacific ◽  
Consumption Expenditure ◽  
Data Set ◽  
Final Consumption ◽  
Long Run ◽  
Short Run

The role of money in influencing real economic activities has been a long-standing debate in macroeconomics. As per the Keynesian theory, household consumption expenditure plays a significant role in promoting economic growth. Given the rapid consumption-led growth pattern in the emerging Asia Pacific region, in this article, we attempt to assess the role of money in influencing household consumption expenditure, which propels economic growth. We employ a panel data set from 2005–2018 for 10 emerging Asian economies, covering Bangladesh, Cambodia, India, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam. Given the region’s heterogeneous nature, we employ a variant of the popular St Louise equation model with autoregressive distributed lag model (ARDL) panel framework based on pooled mean group (PMG) and dynamic fixed effect (DFE) models developed by Pesaran and Shin to study the underlying relationships. Both PMG and DFE models suggest a strong positive relationship between money and household consumption expenditure both in the long run and short run. After allowing for control variables such as government final consumption expenditure and interest rate, the relationships continue to hold steady. Further, the relationship holds true across both narrow (M1) and broad money (M3) measures. The government final consumption expenditure and interest rates do not have influence on household consumption expenditure in the long run, but they have an influence in the short run. JEL Codes: C23, O16, O47, E51, E31, E21

Corporate Finance and Monetary Policy

2018 ◽  
Vol 108 (4-5) ◽  
pp. 1147-1186 ◽  
Author(s):  
Guillaume Rocheteau ◽  
Randall Wright ◽  
Cathy Zhang
Keyword(s):  
Interest Rates ◽  
Bargaining Power ◽  
Trade Credit ◽  
Open Market ◽  
Firm Characteristics ◽  
Over The Counter ◽  
Nominal Interest Rates ◽  
Investment Opportunities ◽  
Bank Funding ◽  
Pass Through

We develop a general equilibrium model where entrepreneurs finance random investment opportunities using trade credit, bank-issued assets, or currency. They search for bank funding in over-the-counter markets where loan sizes, interest rates, and down payments are negotiated bilaterally. The theory generates pass-through from nominal interest rates to real lending rates depending on market microstructure, policy, and firm characteristics. Higher banks' bargaining power, for example, raises pass-through but weakens transmission to investment. Interest rate spreads arise from liquidity, regulatory, and intermediation premia and depend on policy described as money growth or open market operations. (JEL E43, E52, G21, G31, G32, L26)

scholarly journals Credit Redistribution by Listed Manufacturing Firms in Pakistan and the Moderating Role of Financial Depth

2020 ◽  
Vol 12 (4) ◽  
pp. 1-20
Author(s):  
Nisar Ahmad ◽  
Bilal Nafees ◽  
Abdul Rasheed
Keyword(s):  
Trade Credit ◽  
Negative Impact ◽  
Manufacturing Firms ◽  
Future Research ◽  
Data Set ◽  
Listed Firms ◽  
Financial Depth ◽  
The Impact ◽  
Moderating Role

An enhancement in the financial depth (FD) increases the availability of formal credit to firms. Resultantly credit redistribution (CR) by firms is likely to be reduced as they require less trade credit (TC). To provide evidence, how do managers respond to changes in financial depth while making adjustments in their trade credit policy, this paper aims to study the impact of financial depth on credit redistribution by listed manufacturing firms (LMFs). For the firm-level variables, we used a data set of 327 firms listed on PSX for the period 2005 to 2018. Private credit to GDP ratio and market capitalization to GDP ratio are used as proxies for financial depth. Unlike earlier studies, we applied a two-step System GMM estimator to control the endogeneity. The results of the regression analysis display a positive relationship between the use and the supply of trade credit by LMFs. It reveals that LMFs redistribute credit to their customers through trade credit channel. We found a significant and negative impact of FD on the supply of TC by LMFs. Further, we established that financial depth as a moderator has a buffering impact on the credit redistribution by listed firms. The study highlights the moderating role of FD and suggests the financial policymakers of firms to modify their credit policies in response to changes in financial depth. For future research, we suggest the investigation of the effect of financial policy interventions on credit redistribution by small and non-listed firms.

Exchange Spin Coupling from Gaussian Process Regression

2020 ◽  
Author(s):  
Marc Philipp Bahlke ◽  
Natnael Mogos ◽  
Jonny Proppe ◽  
Carmen Herrmann
Keyword(s):  
Machine Learning ◽  
Gaussian Process ◽  
Gaussian Process Regression ◽  
Molecular Magnets ◽  
Molecular Structures ◽  
Spin Coupling ◽  
Structure Property ◽  
Data Set ◽  
Uncertainty Estimates

Heisenberg exchange spin coupling between metal centers is essential for describing and understanding the electronic structure of many molecular catalysts, metalloenzymes, and molecular magnets for potential application in information technology. We explore the machine-learnability of exchange spin coupling, which has not been studied yet. We employ Gaussian process regression since it can potentially deal with small training sets (as likely associated with the rather complex molecular structures required for exploring spin coupling) and since it provides uncertainty estimates (“error bars”) along with predicted values. We compare a range of descriptors and kernels for 257 small dicopper complexes and find that a simple descriptor based on chemical intuition, consisting only of copper-bridge angles and copper-copper distances, clearly outperforms several more sophisticated descriptors when it comes to extrapolating towards larger experimentally relevant complexes. Exchange spin coupling is similarly easy to learn as the polarizability, while learning dipole moments is much harder. The strength of the sophisticated descriptors lies in their ability to linearize structure-property relationships, to the point that a simple linear ridge regression performs just as well as the kernel-based machine-learning model for our small dicopper data set. The superior extrapolation performance of the simple descriptor is unique to exchange spin coupling, reinforcing the crucial role of choosing a suitable descriptor, and highlighting the interesting question of the role of chemical intuition vs. systematic or automated selection of features for machine learning in chemistry and material science.

Population Control (Review Article)

1961 ◽  
Vol 1 (3) ◽  
pp. 89-98
Author(s):  
Karol J. Krotki
Keyword(s):  
Population Control ◽  
Review Article ◽  
Small Enterprise ◽  
Opportunity Costs ◽  
Relative Importance ◽  
Factual Information ◽  
Undue Influence ◽  
Clear Cut ◽  
Economic Considerations

Discussions about the role of small enterprise in economic development tend to remain inconclusive partly because of the difficulty of assessing the relative importance of economic and non-economic objectives and partly because of the dearth of factual information on which to base an economic calculus. It is probably true, moreover, that, because of a lack of general agreement as to the economic case for or against small enterprise, non-economic considerations, including some merely romantic attitudes toward smallness and bigness, tend to exert an undue influence on public policies. There may, of course, be no clear-cut economic case. And noneconomic considerations should and will inevitably weigh significantly in policy decisions. If, however, some of the economic questions could be settled by more and better knowledge, these decisions could more accurately reflect the opportunity costs of pursuing non-economic objectives.

Vocational Development in Emerging Adulthood

2018 ◽  
Author(s):  
Michael W. Pratt ◽  
M. Kyle Matsuba
Keyword(s):  
Turning Point ◽  
Life Stories ◽  
Life Story ◽  
Emerging Adult ◽  
Vocational Development ◽  
Data Set ◽  
The World ◽  
Key Concepts

Chapter 6 reviews research on the topic of vocational/occupational development in relation to the McAdams and Pals tripartite personality framework of traits, goals, and life stories. Distinctions between types of motivations for the work role (as a job, career, or calling) are particularly highlighted. The authors then turn to research from the Futures Study on work motivations and their links to personality traits, identity, generativity, and the life story, drawing on analyses and quotes from the data set. To illustrate the key concepts from this vocation chapter, the authors end with a case study on Charles Darwin’s pivotal turning point, his round-the-world voyage as naturalist for the HMS Beagle. Darwin was an emerging adult in his 20s at the time, and we highlight the role of this journey as a turning point in his adult vocational development.

scholarly journals Actors, Partisan Inclination, and Emotions: An Analysis of Government Shutdown News Stories Shared on Twitter

2021 ◽  
Vol 7 (2) ◽  
pp. 205630512110088
Author(s):  
Colin Agur ◽  
Lanhuizi Gan
Keyword(s):  
Emotional Responses ◽  
The United States ◽  
Online Information ◽  
News Frames ◽  
Data Set ◽  
Political Issues ◽  
News Stories ◽  
News Sharing ◽  
Government Shutdown

Scholars have recognized emotion as an increasingly important element in the reception and retransmission of online information. In the United States, because of existing differences in ideology, among both audiences and producers of news stories, political issues are prone to spark considerable emotional responses online. While much research has explored emotional responses during election campaigns, this study focuses on the role of online emotion in social media posts related to day-to-day governance in between election periods. Specifically, this study takes the 2018–2019 government shutdown as its subject of investigation. The data set shows the prominence of journalistic and political figures in leading the discussion of news stories, the nuance of emotions employed in the news frames, and the choice of pro-attitudinal news sharing.

Do the Heterogeneous Determinants of Repayment Affect Differently across Borrowers of Diverse Credit Sources in Rural Assam? A Double Hurdle Approach

2021 ◽  
pp. 245513332110316
Author(s):  
Tiken Das ◽  
Pradyut Guha ◽  
Diganta Das
Keyword(s):  
Rural Areas ◽  
Probit Model ◽  
Original Data ◽  
Community Based ◽  
Data Set ◽  
Brahmaputra Valley ◽  
Double Hurdle ◽  
Instrumental Variable Probit ◽  
Instrumental Variable Probit Model

This study made an attempt to answer the question: Do the heterogeneous determinants of repayment affect the borrowers of diverse credit sources differently? The study is based on data collected from 240 households from three districts in the lower Brahmaputra valley of Assam through a carefully designed primary survey. Besides, the study uses the double hurdle approach and the instrumental variable probit model to reduce possible selection bias. It observes better repayment performance among formal borrowers, followed by semiformal borrowers, while occupation wise it is prominent among organised employees. It has been found that in general, the household characteristics, loan characteristics and location-specific characteristics significantly affect repayment performance of borrowers. However, the nature of impact of the factors influencing repayment performance is remarkably different across credit sources. It ignores the role of traditional community-based organisations in rural Assam while analysing the determinants of repayment performance. The study also recommends for ensuring productive opportunities and efficient market linkages in rural areas of Assam. The study is based on an original data set that has specially been collected to examine question that—do the heterogeneous determinants of repayment affect the borrowers of diverse credit sources differently in the lower Brahmaputra valley of Assam—which has not been studied before.

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