Working Papers

We construct and calibrate a monetary model of corporate finance with endogenous formation of lending relationships. The equilibrium features money demands by firms that depend on their access to credit and a pecking order of financing means.

The goal of this paper is to show that household-level financial distress (FD) varies greatly, meaning there is unequal exposure to macroeconomic risk, and that FD can increase macroeconomic vulnerability.

We study innovation and diffusion of technology at the industry level. We derive an industry's evolution, from birth to its maturity, and we characterize how diffusion affects the incentive to innovate.

Episodes of booming innovation coincide with intense speculation in financial markets leading to bubbles — increases in market valuations and firm creation followed by a crash.

In this paper, we aim to provide insights into two main questions: First, which firms set up plants in which locations? Second, what determine the scale and location of production? Answering these questions requires us to think about plants and firms as distinct, albeit related, economic entities.