As another example, the provision of trade credit often signals trust between suppliers and buyers, which can then translate into more transparent CMD. Two common methods that the literature uses to deal with reverse causality are the instrumental variable (IV) and difference-in-differences (DID) ...
Often, the borrower is ashamed or afraid to call his or her lender, even though there are actions that could be taken to prevent foreclosure. Lenders often have trouble locating the people in need of advice. The drastic increase in the number of defaults and foreclosures on subprime mortgages...