Aspects of trade credit

Abstract: This dissertation presents various aspects of how and why firms use trade credit. This is done by using several different models that make it possible to concentrate on one, or a few, aspects at a time. The analysis is carried out with the help of tools and methods provided by ordinary microeconomic theory. This means that the author presents a bridge between two of the main strands of the trade credit literature. The analysis goes more into detail than in macroeconomic studies, but at the same time it is less detailed, and more abstract than in the descriptive cash management literature. Thus, readers familiar with either, or both, of the two strands will hopefully find some new and interesting aspects of the use of trade credit, while readers unfamiliar with the subject get a more varied picture of the trade credit than in many other studies.