Italy is an ideal candidate for testing the credit view of the transmission mechanism because of a bank-centred financial structure, a sizeable trade debt, and an economy tilted towards small firms. An empirical analysis of trade credit and debt on averaged panel data shows that small firms act as financially constrained and cycle-sensitive, whereas large ones aim at smoothing sales, adopt an integrated management of inventories and receivables and have a higher trade debt to purchases elasticity. On balance, the net trade credit channel does not, as implied by the credit view, shield small firms from a monetary squeeze.

Does trade credit redistribution thwart monetary policy? Evidence from Italy / Marotta, Giuseppe. - In: APPLIED ECONOMICS. - ISSN 0003-6846. - STAMPA. - 29(12):(1997), pp. 1619-1629.

Does trade credit redistribution thwart monetary policy? Evidence from Italy

MAROTTA, Giuseppe
1997

Abstract

Italy is an ideal candidate for testing the credit view of the transmission mechanism because of a bank-centred financial structure, a sizeable trade debt, and an economy tilted towards small firms. An empirical analysis of trade credit and debt on averaged panel data shows that small firms act as financially constrained and cycle-sensitive, whereas large ones aim at smoothing sales, adopt an integrated management of inventories and receivables and have a higher trade debt to purchases elasticity. On balance, the net trade credit channel does not, as implied by the credit view, shield small firms from a monetary squeeze.
29(12)
1619
1629
Does trade credit redistribution thwart monetary policy? Evidence from Italy / Marotta, Giuseppe. - In: APPLIED ECONOMICS. - ISSN 0003-6846. - STAMPA. - 29(12):(1997), pp. 1619-1629.
Marotta, Giuseppe
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/455663
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