In this paper I evaluate the contribution of financial frictions in explaining the drop in aggregate TFP through misallocation during the Great Recession. I build a quantitative model with heterogeneous establishments; with the help of the model I compute the counterfactual drop in...

Chapter 1. Introduction -- Chapter 2. Evidence of six crises -- Chapter 3. Globalization, national economies, and global crises -- Chapter 4. Conceptual issues — Depressions, recessions, crisis cycles, business cycles -- Chapter 5. A world economy -- Chapter 6. Why do crises occur? Causal...