We assess the quantitative impact of firing costs on aggregate total factor productivity (TFP) in a dynamic general …-equilibrium framework where the distribution of establishment-level productivity is not invariant to the policy. Firing costs not only … losses. Firing costs equivalent to 5 year's wages imply a drop in TFP of more than 20 percent. Factor misallocation accounts …

. To fill this gap, we build a general equilibrium model with heterogeneous agents and firing costs in the tradition of …

presence of a redistributional tax policy, credit market constraints, administrative costs of tax collection, and lack of … government commitment. We characterize how decreasing migration costs for skilled workers affect the time-consistent policies of … in migration costs is Pareto improving when migration costs are high, but have ambiguous effects when these costs are low …

in markups. Quantitatively, the welfare costs of the former are potentially very large relative to the latter. For a …