01638cas a2200241 a 4500 AALejournalIMF002538 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451858129 1018-5941 BD-DhAAL BD-DhAAL De Blasio, Guido. Does Trade Credit Substitute Bank Credit? : Evidence From Firm-Level Data / Guido De Blasio. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper examines micro data on Italian manufacturing firms' inventory behavior to test the Meltzer (1960) hypothesis according to which firms substitute trade credit for bank credit during periods of monetary tightening. It finds that their inventory investment is constrained by the availability of trade credit. As for the magnitude of the substitution effect, however, this study finds that it is not sizable. This is in line with the micro theories of trade credit and the evidence on actual firm practices, according to which credit terms display modest variations over time. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/166 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/166/001.2003.issue-166-en.xml IMF e-Library