A Large Scale Network Analysis of Firm Trade Credit
Leanne Ussher of Queens College City University of New York, Sorin Solomon of Hebrew University Jerusalem, Israel and Marco Lamieri of Intesa Sanpaolo, Milan, Italy were awarded a grant by the Institute for New Economic Thinking for a study of how distress and growth propagate through the real economy via a network of inter-firm trade credit.
Using a unique high-resolution dataset, this project proposes a large scale simulation of how distress and growth propagate through the real economy via a network of trade credit between firms. This project will map, model and simulate an extensive firm supply chain and trade credit network using a stock-flow consistent agent-based micro-macro model, underpinned by firm-level balance sheet data.
The tools developed under this research will aid bank monitoring and stress testing of their clients, as well as expand the imagination and options for policy makers to construct and regulate the corporate credit system.
Queens College City University of New York
Professor of Physics
Hebrew University, Jerusalem
Intesa Sanpaolo, Milan