regulation of fi…rms is desirable.

The recent financial crisis has been accompanied by severe contractions in economic activity and credit as well as unprecedented levels of uncertainty. This project constructs a quantitative model with default risk where an increase in dispersion leads firms to contract the size of their...

How do changes in the economic environment such as reductions in international trade costs or reductions in firms innovation costs impact aggregate productivity? More generally, how do changes in economic policies that affect market size, market structure, and the costs and benefits to firms of...