Trade credit in Italy: Evidence from individual firm data
Giuseppe Marotta ()
Heterogeneity and monetary policy from Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica
In the first detailed study of the trade debt own cost for the Italian manufacturing firms it is shown that, comparing also self-defined bank lending rationed and non rationed firms, interfirm credit received is, if ever, only slightly more expensive than bank credit. Besides establishing the greater reactivity of credit received rather than granted to the external funds implicit cost, it is found that discount offered affects significantly credit granted. Estimates are robust splitting the sample according to various criteria; larger firms, probably because less financially constrained, react more strongly to sales reductions via longer credit and debt periods.
Keywords: Trade credit; Late payments; Credit rationing (search for similar items in EconPapers)
JEL-codes: E52 G32 (search for similar items in EconPapers)
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Working Paper: Trade credit in Italy: Evidence from individual firm data (2000)
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Persistent link: http://EconPapers.repec.org/RePEc:mod:modena:0006
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