This paper examines the two-way relationship between economic growth and financial development for Latin America and the Caribbean (LAC). The sample consists of 32 emerging and developing countries from LAC spanning the period 1970-2014. Controlling for country and time fixed effects, the first...

We propose a demand estimation method that allows for a large number of zerosale observations, rich unobserved heterogeneity, and endogenous prices. We do so by modeling small market sizes through Poisson arrivals. Each of these arriving consumers solves a standard discrete choice problem. We...