Jiao, Yang; Wen, Yi - 2019 - This Version: August 28, 2019
Using Japanese firm data covering the Japanese financial crisis in the early 1990s, we find that exporters' domestic … collapse associated with a financial crisis. In this paper we embed the Melitz's (2003) model into a tractable DSGE framework … with incomplete financial markets and endogenous credit allocation to explain both the Japanese firm-level data and the …