Payments in Kind

  title={Payments in Kind},
  author={Tore Ellingsen},
Payments in kind pose an enduring and empirically important puzzle. The paper provides a formalization of the popular view that payments in kind are due to financial constraints. The key assumption is that buyers’ liquidity is private information. Buyers who are financially constrained may prove their hardship by making part of the payment in kind. The… CONTINUE READING