This paper proposes a new effect of firing costs on firms'' behavior that builds from firms'' demand for liquidity … firing costs reduces the value of labor''s liquidity service, which affects firms'' demand for liquidity, and thus, firms …'' demand for inputs. In addition to this negative effect at the creation margin, I also show that firing costs imply relatively …

This paper reviews how recent studies of banking crises differ with regard to the dating, length, and costs of the … crisis costs. Cross-sectional evidence does not show that the length of a crisis is a significant contributor to its …

: (1) distribution expenses are large - they amount to over half of labor costs; (2) plants in the largest decile …, distribution costs as a share of sales declined by one third. We develop a model of heterogeneous manufacturing firms that rely on … share. In combination with the model, these trends suggest largescale decreases in both variable and fixed costs of …

shocks are associated with higher non-performing loans, bank costs and banking crises, while they reduce bank profits …