The important debate about how economic fluctuations affect employment reallocation in heterogeneous businesses is currently open in the literature. This debate is relevant as it matters for the understanding of the labor market dynamics, and for devising labor policies that aim at dampening...

Using a unique dataset covering the universe of Portuguese firms and their credit situation we show that financially constrained firms are found across the entire firm size distribution, even in the top 1%. Incorporating a richer, empirically supported, productivity process into a standard...

Brazil has had a long period of high inflation. It peaked around 100 percent per year in 1964, decreased until the first oil shock (1973), but accelerated again afterward, reaching levels above 100 percent on average between 1980 and 1994. This last period coincided with severe balance of...