The potential for rare economic disasters explains a lot of asset-pricing puzzles. I calibrate
disaster probabilities from the twentieth century global history, especially the sharp …

Exploiting the exogenous and regional nature of the Great East Japan Earthquake of 2011,
this article provides a quantification of the role of input-output linkages as a mechanism for …

The demographic transition can affect the equilibrium real interest rate through three
channels. An increase in longevity—or expectations thereof—puts downward pressure on …

We study the sensitivity of credit supply to bank financial conditions in 16 emerging
European countries before and during the financial crisis. We use survey data on 10,701 …

This paper examines how a shock to collateral value influences firms' debt capacities and
investments. Using a source of exogenous variation in collateral value provided by the land …

Modern mainstream economics is attracting an increasing number of critics of its high
degree of abstraction and lack of relevance to economic reality. Economists are calling for a …

This article studies how a shock to the financial health of banks, caused by a decline in the
asset markets, affects the real economy. The land market collapse in Japan provides an …

We examine the effects of government subsidies on enterprise operating efficiency and the
“stiff but deathless” characteristics of zombie firms. Previous research has explored the …

We survey the macroeconomic stagnation and financial problems in Japan. The financial
sector assessment includes separate analyses of the commercial banks, the life insurance …

We propose a coherent unified approach to the study of the linkages among economic
growth, financial structure, and inequality, bringing together disparate theoretical and …