Trade credit in a monetary economy

Stefan C. Norrbin, Kevin Reffett

Research output: Contribution to journalArticlepeer-review

13 Scopus citations


This paper examines the importance of financial and technological stochastic trends in the context of a stochastic, dynamic, general equilibrium monetary economy with multiple means of payment. In contrast to earlier empirical work, we find support for both a long-run substitution condition between money, trade credit, and interest rates as well as a long-run transactions demand for alternative payments media consistent with real business cycle frameworks.

Original languageEnglish (US)
Pages (from-to)413-430
Number of pages18
JournalJournal of Monetary Economics
Issue number3
StatePublished - Jun 1995


  • Canonical cointegrating regression
  • General equilibrium
  • Multiple means of payment models
  • Stochastic trends
  • Trade credit

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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