We study the COVID-19 epidemic in emerging markets that face financial frictions and its mitigation through social distancing vaccination. find restricted vaccine availability markets, as captured by limited quantities high prices, renders pandemic exceptionally costly these countries, compared with economies without frictions. Improved access to enables a better response delay supplies, it sup...

We postulate a continuous?time heterogeneous agent model with financial sector and households to study the nonlinear linkages between aggregate variables. In our model, interaction supply of bonds by precautionary demand for produces significant endogenous risk . This makes economy transition high?leverage region low?leverage region, which, in turn, creates state dependence impulse responses: s...

We examine firms’ employment adjustments immediately after the imposition of stringent lockdown in March 2020. In doing so, we use monthly administrative data, and take value-added tax payment changes as a proxy for demand shock. merge data with COVID-19 tests, classified by economic activity, employ fixed effects instrumental variable regression. find that all sized firms manufacturing sector ...