combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy … costs of ordering firms hold an inventory of intermediates. We show that in response to an uncertainty shock firms optimally …

shocks to production costs shares profit risk under limited commitment. Once structurally estimated, the model replicates the …

The paper analyzes the labor market effects of globalization when foreign market entry is costly and risky. With … cannot easily switch industries and wages are inflexible in the short run, globalization tends to increase unemployment. In … this situation, government unemployment benefits reduce the wages that exporting firm's need to pay workers as risk …

Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank … lending and risk-taking shocks, in contrast, have only a temporary effect on real GDP and tend to lead to a (moderate) rise in …