Credit and saving constraints in general equilibrium: A quantitative exploration

In this paper we build an incomplete-markets model with heterogeneous households and firms to study the aggregate effects of saving constraints and credit constraints in general equilibrium. We calibrate the model using survey data from Colombia, a developing country in which informal saving and credit frictions are pervasive. Our quantitative results suggest that reducing savings […]

Corruption and Firms

We estimate the causal real economic effects of a randomized anti-corruption crackdown on local governments in Brazil using rich micro-data on corruption and firms. After anti-corruption audits,municipalities experience an increase in the number of firms concentrated in sectors most dependent ongovernment relationships and public procurement. Through the estimation of geographic spillovers andadditional tests, we show […]