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Illiquidity and All Its Friends

By Jean Tirole

Journal of Economic Literature, June 2011

The recent crisis was characterized by massive illiquidity. This paper reviews what we know and don't know about illiquidity and all its friends: market freezes, fire sales, contagion, and ultimately insolvencies and bailouts. It first explains why liquid...

What Determines Productivity?

By Chad Syverson

Journal of Economic Literature, June 2011

Economists have shown that large and persistent differences in productivity levels across businesses are ubiquitous. This finding has shaped research agendas in a number of fields, including (but not limited to) macroeconomics, industrial organization, l...