What are the effects of a large temporary shock to the economy such as a temporary lockdown in response to a pandemic? Are the effects propagated and made persistent by firms’ deteriorating balance sheets...
This paper proposes a quantitative model of endogenous firm dynamics to study growth acceleration episodes triggered by reforms. It finds that reversals of entry distortions lead to persistent growth in...
Financial crises are associated with severe economic contractions and lasting deteriorations in labor market conditions. Despite the close connection between financial crises and sustained rises in unemployment...