Traders are often blamed for high prices, prompting government regulation. We study the effects of a government ban of a layer of financing intermediaries in edible oil supply chain in Bangladesh during 2011–2012. Contrary to the predictions of a standard model of an oligopolistic supply chain, the ban caused downstream wholesale and retail prices to rise, and pass-through of the changes in imported crude oil price to fall. These results can be explained by an extension of the standard model to incorporate trade credit frictions, where intermediaries expand credit access of downstream traders.
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Creative Commons Attribution 4.0 International (CC BY 4.0) License | https://creativecommons.org/licenses/by/4.0/ |
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AEA Data and Code Repository | https://www.openicpsr.org/openicpsr/aea |
A readme file with detailed instructions is part of the (external) reproducibility package.
All data is public and contained in the (external) reproducibility package. For access to the raw data (apart from reproducibility) see the readme file in the package.
Author | Affiliation | |
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M. Shahe Emran | Initiative for Policy Dialogue, Columbia University | shahe.emran@gmail.com |
Dilip Mookherjee | Department of Economics, Boston University | dilipm@bu.edu |
Forhad Shilpi | World Bank | fshilpi@worldbank.org |
M. Helal Uddin | Department of Economics, Dhaka University | umhelal@gmail.com |
2021-07
Location | Code |
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Bangladesh | BGD |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/the World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
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Creative Commons Attribution 4.0 International (CC BY 4.0) License | https://creativecommons.org/licenses/by/4.0/ |
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Krestel | CK | World Bank |
2023-06-27
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