Using a rich dataset of Colombian manufacturing establishments, we illustrate scarring effects of recessions operating through inefficient exit induced by heterogeneous credit constraints. We show that financially constrained businesses may be forced to exit the market during recessions even if...

In this paper we explore the determinants of mortgage loans interest rates in Colombia during the period January 2002-June 2006. We find that the main macroeconomic determinant is public debt interest rates. At a micro level we find that credit risk is the main determinant. We show and analyze...

The pandemic hit the Colombian economy as hard as other countries. Using the novel Business Pulse Survey, the paper test's the effect of government support and COVID-19 cases on firms' performance. A one standard deviation increase in government support at the average intensity of the pandemic...