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Markup-Pricing
Markup-Pricing
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American Economic Journal: Macroeconomics
Diversion Risk, Markups, and the Financing Cost Advantage of Trade CreditAlvaro 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 …