This paper studies the differences in firm size distributions between European countries. We start by documenting large differences using the EFIGE database: in the countries under most severe distress in the sample (Italy and Spain) firms are relatively small compared with the remaining...

We evaluate the welfare gains of extending the duration and increasing the replacement ratio of the current unemployment insurance system in US. To this end, we build a general equilibrium overlapping generations model with on the job human capital accumulation. The model is able, among other...

We analyze the process of technological innovation from the perspective of developing countries. Specifically, we explore how developmental and regulatory impediments to the process of resource reallocation and firm renewal limit the ability of developing countries to adopt new technologies....

signal about the fundamental. The rst characteristic implies that the best policy (tax on investment) with commitment is state contingent. The second and third characteristics make the information incomplete. In particular, agents have dierent information sets, and therefore dierent beliefs,...

We explore how developmental and regulatory impediments to resource reallocation limit the ability of developing countries to adopt technologies: an efficient economy quickly innovates; but when the economy is unable to fully use resources liberated by closing firms, or when policy distortions...

We explore how regulatory or institutional distortions to resource reallocation limit the ability of developing countries to adopt new technologies. An efficient economy innovates quickly; but when the economy is unable to redeploy resources away from inefficient uses, technological adoption...

We consider an infinite horizon economy in which agents are potentially heterogeneous with respect to both initial wealth and labor skills. We study indirect preferences over redistributive fiscal policies - sequences of affine taxes on labor and capital income - that can be supported as...

A legislature has to reach a collective decision in either of two states of nature. In the first state, legislators vote over an ideological issue. In this state, legislators may not vote for the pragmatic (optimal) policy and, instead, confirm voters' ideological bias. In the second state, the...