Barter in Russia: Liquidity Shortage Versus Lack of Restructuring

Sophie Brana and Mathilde Maurel

No 2258, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Barter in Russia can be explained by firms' liquidity constraint: it is strongly correlated with financial tightness. However, a microeconomic analysis reveals that the rationale behind this liquidity constraint is different according to the firm situation. For firms in a good economic situation, but faced with adverse selection problems and having no access to bank credit, barter acts as a substitute for short-term credit. While for indebted firms, barter, in the same way as external finance, is a way of avoiding costly restructuring.

Keywords: Barter; Non-Monetary Transactions; Russia; Transition; Virtual Economy (search for similar items in EconPapers)
JEL-codes: C22 C23 E5 P2 (search for similar items in EconPapers)
Date: 1999-10
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Barter in Russia: Liquidity Shortage Versus Lack of Restructuring (1999)
Working Paper: Barter in Russia: Liquidity Shortage Versus Lack of Restructuring (1999)
Working Paper: Barter in Russia: Liquidity Shortage Versus Lack of Restructuring (1999)
Working Paper: Barter in Russia: Liquidity Shortage versus Lack of Restructuring (1999)
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