Barter Credit: Warehouses as a Contracting Technology

Barter Credit: Warehouses as a Contracting Technology

large Brazilian agribusiness lender introduces a new contracting technology: grain warehouses. Using runner-up warehouse locations as a control group, I find that lenders' access to these warehouses permits a new debt contract, i.e. a barter credit repayable in grain, increases borrowers' debt capacity and lowers borrowing costs.

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