adjustment of the contract payment, involving adjustment costs for both players. Players’ payoffs from trade under the contract … whenever the contract payment relative to the outcome of an adjustment passes a certain threshold, depending among other things … of the adjustment costs. There is strategic substitutability in the choice of thresholds, so that if one player becomes …

This study investigates whether exchange rate flexibility aids real exchange rate adjustment based on intra-period data … produces faster or slower real exchange rate adjustment than the much less flexible official rate does. Half-life estimates of … adjustment speeds are obtained using fractional time series analysis. We find no systematic evidence that greater exchange rate …

, Romania, Poland, and Slovakia. Using the size of trade credit to quantify the success of contracting, we ask: Do the courts …

credit enforcement is prohibitively costly. The theory helps to explain how the three observed phenomena of output decline …