Producers can leverage their bargaining power vis-'a-vis consumers by entering bargaining with debt. We discover novel general-equilibrium effects of such strategic debt by developing a money-search framework featuring heterogeneous consumers. Debt distorts trade along two margins: it destroys...

We extend a quantitative general equilibrium model of global trade networks to evaluate the economic impacts of various trade disruptions. Our analysis considers scenarios such as US-China trade wars, a broader Cold War 2.0 decoupling, Trump-era tariffs, and disruptions in the trade of critical...

We extend a quantitative general equilibrium model of global trade networks to evaluate the economic impacts of various trade disruptions. Our analysis considers scenarios such as US-China trade wars, a broader Cold War 2.0 decoupling, Trump-era tariffs, and disruptions in the trade of critical...

Producers can leverage their bargaining power vis-'a-vis consumers by entering bargaining with debt. We discover novel general-equilibrium effects of such strategic debt by developing a money-search framework featuring heterogeneous consumers. Debt distorts trade along two margins: it destroys...

This paper studies heterogeneous firm responses to a sudden trade-induced profitability shock - the 2015 Swiss franc appreciation. Using firm-level investment data and a novel measure of exposure, we document that this trade shock causes large and persistent investment declines among affected...

This article develops a novel economic sentiment indicator (LLM-ESI) by applying large language models to open-ended responses from Swiss business tendency surveys. Using a BERT-based transformer model, it extracts firmlevel sentiment from free-text survey comments and aggregates it into a...

This paper studies heterogeneous firm responses to a sudden trade-induced profitability shock - the 2015 Swiss franc appreciation. Using firm-level investment data and a novel measure of exposure, we document that this trade shock causes large and persistent investment declines among affected...

This article develops a novel economic sentiment indicator (LLM-ESI) by applying large language models to open-ended responses from Swiss business tendency surveys. Using a BERT-based transformer model, it extracts firmlevel sentiment from free-text survey comments and aggregates it into a...

The average unemployment rate in Europe has been consistently higher than in the United States since 1980. The main explanation offered by a rather large economics literature focuses on the interaction between institutions and shocks. The contribution of this paper is twofold: to assess whether...

This paper investigates the causal effect of funding research and development (R&D) cooperation with public universities on the performance of firms. We use comprehensive firm-level panel data from Switzerland that spans from 2010 to 2022 and covers a broad set of variables including the...