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countries; patterns of employment dynamics; firm dynamics in nonmanufacturing industries such as retail, health services, and …
Persistent link: https://www.econbiz.de/10014487961
We show how real and financial frictions amplify the impact of uncertainty shocks. We build a model with real frictions, and find adding financial frictions roughly doubles the impact of uncertainty shocks. Higher uncertainty alongside financial frictions induces the standard real-options...
Persistent link: https://www.econbiz.de/10011895833