This paper identifies the effect of variation in government-backed loan supply on unemployment exploiting regional variation in the Swiss COVID-19 lending program. The rules of the program introduce variation in loan supply across Cantons. This variation helps disentangling supply from demand...

We study the distributional consequences of COVID-19 by using a stock-flow consistent agent-based model that captures some of the aspects of pandemic-related lockdowns. In particular, the model distinguishes between "essential" and "non-essential" industries, between jobs that can be done from...

A two-sector incomplete markets model with heterogeneous agents can be used to study the distributional effects of the COVID-19 lockdown. While negative aggregate welfare effects of the lockdown are unavoidable, the size of aggregate welfare effects as well as the distribution of the welfare...

This paper illustrates a case where an increase of the in-terest rates improves the economic activity and reduces incomeinequality. This theoretical exercise deals with a simple model ofdisequilibrium with accountant identities of budget constraints. Inaddition, and following previous models,...