BREAD Working Paper No. 568, December 2019

Credit Rationing and Pass-Through in Supply Chains: Theory and Evidence from Bangladesh M. Shahe Emran, Dilip Mookherjee, Forhad Shilpi, M. Helal Uddin Abstract We extend standard models of price pass-through in an imperfectly competitive supply chain to incorporate rationing of trade credit. Credit rationing reverses predictions concerning effects of raw material import prices on pass-through […]