We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard. Mitigating financial frictions reduces the incentive of high-skilled workers to migrate to one region such that an unequal distribution of industrial activity becomes less...

This study uses trade data from Switzerland's Federal Customs Administration to examine the impact of Covid-19 on international goods trade between January and July 2020. We show that Swiss trade during that period fell by 11% compared to 2019 and that the contraction following the "Federal...

We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard. Mitigating financial frictions reduces the incentive of mobile workers to migrate to one region such that an unequal distribution of industrial activity becomes less likely....

In contrast to what several papers have argued recently, we show that firm heterogeneity fosters agglomeration of economic activity. If firms are more similar with respect to their total factor productivity, each company faces a lower propensity to export. This renders the home market more...

This study uses trade data from Switzerland's Federal Customs Administration to examine the impact of Covid-19 on international goods trade between January and July 2020. We show that Swiss trade during that period fell by 11% compared to 2019 and that the contraction following the "Federal...