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Staff Working Papers

Financial Development Beyond the Formal Financial Market

Staff Working Paper 2018-49 Lin Shao
This paper studies the effects of financial development, taking into account both formal and informal financing. Using cross-country firm-level data, we document that informal financing is utilized more by rich countries than poor countries.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets, Firm dynamics, Productivity JEL Code(s): E, E4, E44, O, O1, O17, O4, O47

Aggregate Fluctuations and the Role of Trade Credit

Staff Working Paper 2017-37 Lin Shao
In an economy where production takes place in multiple stages and is subject to financial frictions, how firms finance intermediate inputs matters for aggregate outcomes. This paper focuses on trade credit—the lending and borrowing of input goods between firms—and quantifies its aggregate impacts during the Great Recession.