When trading across borders, firms choose between different payment contracts. In particular, they need to decide whether payment takes place before or after delivery. Schmidt-Eisenlohr (2011) shows that this choice is relevant as it allows firms to trade off differences in financing costs and...

When trading across borders, firms choose between different payment contracts. In particular, they need to decide whether payment takes place before or after delivery. Schmidt-Eisenlohr (2011) shows that this choice is relevant as it allows firms to trade off differences in financing costs and...

When trading across borders, firms choose between different payment contracts. In particular, they need to decide whether payment takes place before or after delivery. Schmidt-Eisenlohr (2011) shows that this choice is relevant as it allows firms to trade off differences in financing costs and...

When trading across borders, firms choose between different payment contracts. In particular, they need to decide whether payment takes place before or after delivery. Schmidt-Eisenlohr (2011) shows that this choice is relevant as it allows firms to trade off differences in financing costs and...

Shipping goods internationally is risky and takes time. To allocate risk and to finance the time gap between production and sale, a range of payment contracts is utilized. I study the optimal choice between these payment contracts and their implications for trade. The equilibrium contract is...

Financial institutions are increasingly linked internationally. As a result, financial crises and government intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While a social planner trades off tax distortions, liquidation...

Shipping goods internationally is risky and takes time. Therefore, trading partners not only have to agree on the specification and the price of a good, but also on the timing of payments. To allocate risk and to finance the time gap between production and sale, a range of different payment...

Financial institutions are increasingly linked internationally. As a result, financial crisis and government intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While a social planner trades off tax distortions, liquidation...

Larger firms are more likely to use tax haven operations to exploit international tax differences. We study tax competition between a large country and a tax haven. In the large country, heterogeneous firms operate under monopolistic competition and can choose to shift profits abroad. We show...

How valuable are long-term supplier relationships? To address this question, this paper explores relationships between U.S. importers and their suppliers abroad. We first establish several facts: almost half of U.S. imports are in relationships three years or older, relationship survival and...