Official recession figures ignore the costs associated with the loss of human life due to COVID-19. This paper constructs "full recession" measures that take into account the death toll. Key for the estimates are the number of dead, the individual's willingness to accept mortality risk, and...

Theoretical studies have shown that under unorthodox assumptions on preferences and production technologies, collateral constraints can act as a powerful amplification and propagation mechanism of exogenous shocks. We investigate whether or not this result holds under more standard assumptions....