Seminarios

El profesor Rodrigo Wagner (Universidad de Chile) presentará "Trust one container at a time: Sequential Trade-Credit Finance", trabajo realizado en conjunto con Fritz Foley cuyo resumen se encuentra más abajo.

El seminario se llevará a cabo este viernes 13 de noviembre a las 13:00 hrs en la sala P307. Para confirmar almuerzo, favor de escribirle a Pamela Fuentes a más tardar el jueves a las 13:00 hrs al correo pamela.fuentes@econ.uchile.cl. Quienes confirmen y luego no puedan asistir, se les agradecería que avisaran.

Quienes quieran inscribir presentaciones para futuras sesiones, favor de escribir a damian.vergara.d@gmail.com.

Abstract
When a seller ships two containers simultaneously her exposure to the counterparty risk of the buyer defaulting on the payment is two containers. In contrast, when the exporter ships two containers sequentially, the exposure is just one container, since she gets paid before shipping the second container. We argue sequential shipment is a relevant channel to finance international trade through Open Account; explaining part of the reduction in Cash in Advance and Bank-mediated trade finance in recent decades. Exposure through sequential trade finance is a source of increasing returns, since you can ship twice the sales with a less than proportional growth in Value-at-Risk of default. After a simple theoretical framework that formalizes this intuition, we use one and a half decades of Chilean export transaction to test this mechanism. We find that as the total annual value shipped is spread across more months, exporters are more likely to use Open Account terms. The results are robust to a number of alternative explanations, like age of the relationship, product heterogeneity and institutional differences. Exporting a sequence of containers could be an additional force against default, facilitating business-to-business credit