It is a well-known fact that a great majority of countries implement agricultural input subsidies as a tool to boost agricultural productivity and output. However, even though this practice is widely spread and represents a large part of the agricultural budget, little emphasis has been placed...

What is the optimal policy response to a negative sectoral shock? How do frictions in goods and labor markets affect the nature and speed of the process of reallocating resources across alternative uses? Should government controlled inputs be allocated to compensate for frictions faced by the...

I study the firm-level dynamic response of a commodity-exporting economy to global cycles in commodity prices. To do so, I develop a heterogeneous-firms model that endogenizes declines in aggregate productivity through reallocation towards less productive firms. Within a given sector, commodity...