Vinci, Francesca; Licandro, Omar - 2021
We propose a theoretical framework to reconcile episodes of V-shaped and L-shaped recovery, en- compassing the … may counterbal- ance the shocks, preventing the destruction of economic capacity and inducing a V-shaped recovery. However …-shaped recovery. When calibrated to the U.S. economy, the model replicates well the L-shaped recovery and switching-track that …