Capital reallocation is procyclical, despite measured productive reallocative opportunities
being acyclical or even countercyclical. This article reviews the advances in the literature …

How much capital should financial intermediaries hold? We propose a general equilibrium
model with a financial sector that makes risky long‐term loans to firms, funded by deposits …

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 studies the business-cycle dynamics of secondary markets for physical capital
and their effects on the macroeconomy. In the data, both capital reallocation and the price of …

We characterize efficiency in an equilibrium model of investment and capital reallocation
with heterogeneous firms facing collateral constraints. The model features two types of …

Based on the panel data of 284 prefecture-level city in China from 2005 to 2019, this paper
measures the urban capital allocation efficiency and takes smart city construction as a quasi …

A common prediction of macroeconomic models of credit market frictions is that the tightness
of financial constraints is countercyclical. Theory suggests a negative collateralizability …

Abstract Theory posits that financial intermediation (FI) spurs economic growth and supports
financial system stability by reducing informational asymmetries and agency problems. Most …

Uncertainty is a crucial source of financial market volatility. Unlike previous research
considering uncertainty from holistic and static viewpoints, we investigate the contagion …

Leased capital accounts for about 20% of the total productive physical assets used by US
publicly listed firms, and this proportion is even higher among small and financially …