A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to effcient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that incomplete asset markets and a low price elasticity of tradables can account...

This paper presents one of the first studies of firm demographics in Estonia, focusing particularly on the processes of firm entry and exit as well as survival analysis of new firms. Also, decompositions of productivity change into components consisting of resource reallocation, firm entry and...