This paper empirically studies the role of fiscal constraints for disaster vulnerability and investment decisions in a global sample of firms. We build novel firm-level measures of exposure to fiscal constraints based on the sales distributions of firms across countries. This approach allows us...

We analyze the role of endogenous capital-embodied innovation in macroeconomic dynamics. We first leverage a newly assembled dataset to show that the quality of new capital goods is procyclical because new-product introduction by capital-goods producers drops during recessions. We then develop a...