To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jbankfin.2009.09.013 Byline: Erhan Artuc, Selva Demiralp Keywords: Discount window; Primary credit; Federal funds market Abstract: In 2003, the Federal Reserve introduced primary credit as its main discount window lending program. This program replaced the adjustment credit program, which, subject to a number of restrictions, had generated a stigma associated with borrowing from the Federal Reserve. Lessening the stigma of borrowing was viewed as essential for reducing the reluctance to borrow from the Federal Reserve. We develop a structural model of daily borrowing. Using this model, we estimate the implicit cost associated with borrowing. Our results suggest that the stigma of borrowing is significantly reduced. Author Affiliation: Department of Economics, Koc University, Istanbul 34450, Turkey Article History: Received 24 October 2008; Accepted 18 September 2009