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

This paper studies the macroeconomic effects of capital reallocation with financial shocks. I
develop a model in which firms face borrowing constraints, idiosyncratic productivity shocks …

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 …

We study dynamic general equilibrium models where capital is traded in frictional markets
featuring liquidity considerations. Gains from trade arise from ex ante heterogeneity: some …

This project studies economies with markets for capital reallocation, where gains from trade
are driven by firm-specific productivity shocks, but are hindered by search frictions and …

This paper argues that leasing, as an important but often ignored source of external
financing, facilitates the allocation efficiency of finance. We document a large overestimation …

We try to explain the simultaneous increases in economic growth and income inequality in
China with a heterogeneous endogenous growth-based DSGE model. It is found that: First …

How efficiently do markets reallocate capital in booms and busts? Using a novel dataset of
offshore drilling contracts I examine the role of matching in shaping industry reallocation. Oil …

We differentiate the liquidity and the quality of private assets in a tractable incomplete‐
market model with heterogeneous agents. The model decomposes the convenience yield of …

This paper studies economies where firms acquire capital in primary markets and then, after
idiosyncratic productivity shocks, retrade it in secondary markets that incorporate bilateral …