We analyze monetary policy in a New Keynesian model with heterogeneous firms and financial frictions. Firms differ in their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends on the time-varying distribution of firms. Although a...

How do banks facilitate creative destruction and shape firm turnover? We develop a dynamic general equilibrium model of bank credit reallocation with endogenous firm entry and exit that allows for both theoretical and quantitative analysis. By restructuring loans to firms with poor prospects and...

This paper explores the dynamics of press freedom around events that threaten or oust the incumbent regime of a country. While democracies on average grant the press more freedom, our theoretical starting point is that democracies and autocracies may have similar incentives to protect the power...

We study a two-sided markets model of two competing television stations that offer content of differentiated quality to ad-averse consumers and advertising space to firms. As all consumers prefer high over low quality content, competition for viewers is vertical. By contrast, competition for...

This paper analyzes the effects of net neutrality regulation on investment incentives for Internet service providers (ISPs) and content providers (CPs), and their implications for social welfare. We show that the ISP's decision on the introduction of discrimination across content depends on a...

This paper presents a basic framework to assess whether structural (vertical) separation is desirable. It is discussed within the setting of fixed telecommunications markets. From an economist's perspective, the key question that underlies the case for structural separation is: is there a...

Will telecommunications policy in the form of industry-specific regulation go away? A literature review of the five policy areas (1) termination monopoly, (2) local bottleneck access, (3) net neutrality, (4) spectrum management, and (5) universal service suggests that in some of them a move to...

We evaluate the impact of a major European state aid programme for broadband deployment applied to rural areas in the German state of Bavaria in the years 2010 and 2011. Using matched difference-in-differences estimation strategies, we find that aided municipalities have – depending on...

Currently, U.S. and EU telecommunications policies differ in many respects. For example, wholesale access to local loops is largely deregulated in the U.S. but continues to be regulated in the EU. Or, the U.S. has an elaborate universal service policy with a set of universal service funds and...