This paper formalizes a classic idea that in second-best environments trade can induce
welfare losses: incremental income losses from distortions can outweigh trade gains. In a …

This chapter develops a framework with which to interpret and survey answers to the
question: how does increased openness affect aggregate welfare in a typical developing …

We estimate real losses arising from the cross‐sectional misallocation of financial liabilities.
Extending a production‐based framework of misallocation measurement to the liabilities …

This paper examines whether the rapidly growing firm patenting activity in China is
associated with productivity growth, and whether this association changes after the …

In standard macrofinance models, financial constraints mainly affect small or young firms but
not large or old ones due to the self-financing mechanism, and the dispersion of marginal …

We document five novel facts about the dynamism of Chinese manufacturing firms between
2003 and 2018. We show that:(i) the revenue and capital shares of young firms have …

Most aggregate theories of financial frictions model credit available at a single cost of
financing but rationed. However, using a comprehensive firm-level credit registry, we …

This paper provides analytic guides to recent literature on China's macroeconomic
development, emphasizing the critical role of the gradualist reform approach. Our analysis …

'Zombie lending'occurs when a lender supports an otherwise insolvent borrower. Recent
studies document that zombie lending has been widespread following the European …

We develop a new empirical framework to identify and estimate the effects of monetary
stimulus on the real economy. The framework is applied to the Chinese economy when …