1 option
Credit Rationing and Pass-Through in Supply Chains: Theory and Evidence from Bangladesh / M. Shahe Emran, Dilip Mookherjee, Forhad Shilpi, M. Helal Uddin.
- Format:
- Book
- Author/Creator:
- Emran, M. Shahe.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w26615.
- NBER working paper series no. w26615
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Credit Rationing and Pass-Through in Supply Chains
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- We extend standard models of price pass-through in an imperfectly competitive supply chain to incorporate rationing of trade credit. Credit rationing reverses predictions concerning effects of raw material import prices on pass-through to wholesale prices, and effects of regulations of intermediaries. To test these we study the effects of a policy in Bangladesh's edible oils supply chain during 2011-12 banning a layer of financing intermediaries. Evidence from a difference-in-difference estimation rejects the standard model. We find that the regulatory effort to reduce market power of financing intermediaries ended up raising consumer prices by restricting access to credit of downstream traders.
- Notes:
- January 2020.
- Print version record
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.