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dc.contributor.authorSCHMIDT-EISENLOHR, Tim
dc.date.accessioned2009-12-11T15:12:26Z
dc.date.available2009-12-11T15:12:26Z
dc.date.issued2009
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/12966
dc.description.abstractCross border transactions are conducted using diffierent payment contracts, the usage of which varies across countries and over time. In this paper I build a model that can explain this observation and study implications from this for international trade. In the model exporters optimally choose payment contracts, trading off differences in enforcement and efficiency between financial markets in different countries. I find that the ability of firms to switch contracts is central to the reaction of trade to variations in financial conditions. Numerical experiments with a two-country version of the model suggest that limiting the choice between payment contracts reduces traded quantities by up to 60 percent.en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2009/43en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectF12en
dc.subjectF3en
dc.subjectG21en
dc.subjectG32en
dc.subjecttrade financeen
dc.subjectpayment contractsen
dc.subjecttrade patternsen
dc.subjectfinancial crisisen
dc.titleTowards a Theory of Trade Financeen
dc.typeWorking Paperen
dc.neeo.contributorSCHMIDT-EISENLOHR|Tim|aut|
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