We analyze how corporate reorganization and liquidation change labor reallocation during bankruptcy using randomized judge assignments and linked Portuguese employer-employee and firm data. Reorganization reduces the negative effect of bankruptcy on employee earnings, even with most workers leaving reorganized firms. We examine plausible mechanisms and find evidence that the retention of general skills and improved job-match quality contribute meaningfully to this effect. The average cost of labor misallocation caused by reorganization is small.

Hiroatsu TanakaI study the dynamics of default-free bond yields and term premia using a novel equilibrium term structure model with a New-Keynesian core and imperfect information about productivity. Imperfect information can justify a shock to signals about productivity that does not lead to actual changes in productivity, which can be interpreted as a demand shock.

Orion Brown started Black Travel Box to serve Black female travelers who find hotel lotions and shampoos inadequate. Randel Bennett co-founded the insurance startup Sigo Seguros for underserved Spanish-speaking drivers. Bill Shufelt and John Walker founded Athletic Brewing Company so athletes and nondrinkers in social situations could drink tasty nonalcoholic beer.

Christopher Gust, Edward Herbst, and David Lopez-SalidoUnder finite horizon planning, households and firms evaluate a full set of state-contingent paths along which the economy might evolve out to a finite horizon but have limited ability to process events beyond that horizon.