This paper explores the substitution relationship between trade credit and bank credit, and its counter-cyclic dynamic pattern through economic cycles. We propose a new theoretical model, using a mechanism design method, which predicts the substitution between the two credits and its...

Purpose – The purpose of this paper is to shed light on the effect of high-level human capital investment, using tertiary education as the proxy, on the urban-rural income gap in China. Design/methodology/approach – Using a panel dataset covering 28 provinces of China over the period from...

This paper studies the optimal trade credit term decision in an extended economic ordering quantity (EOQ) framework that incorporates a default risk component. A principal-agent bilevel programming model with costs minimization objectives is set up to derive the incentive-compatible credit term....