Credit Policy

Alvaro Garcia-Marin · Santiago Justel · Tim Schmidt-Eisenlohr

This paper provides a theory and evidence for why firms with higher markups extend more trade credit, focusing on a financing cost channel that is distinct from existing competition-based …

Allen N. Berger · Onesime Epouhe · Raluca A. Roman

This paper examines the effects of the Troubled Asset Relief Program (TARP) and the Paycheck Protection Program (PPP)—two government bailout programs during the Global Financial Crisis and the …

Wenhao Li · Ye Li

Crises have cleansing effects—low-quality firms face greater financial shortfalls and invest less than high-quality firms—but public credit support dampens these effects by reducing financing cost …

José E. Gutiérrez

This paper provides a contract-theoretic rationale for the special liquidity regulation of bank credit lines—a form of lending that has received little attention in the regulatory literature despite …

Anil K. Kashyap · Jeremy C. Stein

This 2000 *American Economic Review* paper (circulated as NBER Working Paper 6056, June 1997, under the title "What Do a Million Banks Have to Say About the Transmission of Monetary Policy?") tests …