Frictional Capital Reallocation I: Ex Ante Heterogeneity

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aut.relation.endpage116
aut.relation.journalJournal of Economic Dynamics and Controlen_NZ
aut.relation.pages17
aut.relation.startpage100
aut.relation.volume89en_NZ
aut.researcherXiao, Xiaolin
dc.contributor.authorWright, Ren_NZ
dc.contributor.authorXiao, SXen_NZ
dc.contributor.authorZhu, Yen_NZ
dc.date.accessioned2019-04-05T03:17:57Z
dc.date.available2019-04-05T03:17:57Z
dc.date.copyright2018en_NZ
dc.date.issued2018en_NZ
dc.description.abstractWe study dynamic general equilibrium models where capital is traded in frictional markets featuring liquidity considerations. Gains from trade arise from ex ante heterogeneity: some firms are better at investment, so they build capital in the primary market, while others acquire it in the secondary market. We consider specifications with random search and bargaining, as well as those with directed search and posting, and provide strong results for both on existence, uniqueness, efficiency and comparative statics. Monetary and fiscal policy are discussed in detail. Among other advantages, the framework is tractable enough to analyze using simple diagrams.
dc.identifier.citationJournal of Economic Dynamics and Control, 89, 100-116.
dc.identifier.doi10.1016/j.jedc.2018.01.003en_NZ
dc.identifier.issn0165-1889en_NZ
dc.identifier.urihttps://hdl.handle.net/10292/12421
dc.publisherElsevieren_NZ
dc.relation.urihttps://www.sciencedirect.com/science/article/pii/S0165188918300034?via%3Dihub
dc.rightsCopyright © 2018 Elsevier Ltd. All rights reserved. This is the author’s version of a work that was accepted for publication in (see Citation). Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. The definitive version was published in (see Citation). The original publication is available at (see Publisher's Version).
dc.rights.accessrightsOpenAccessen_NZ
dc.subjectCapital reallocation; Investment; Liquidity; Monetary and fiscal policy
dc.titleFrictional Capital Reallocation I: Ex Ante Heterogeneityen_NZ
dc.typeJournal Article
pubs.elements-id333237
pubs.organisational-data/AUT
pubs.organisational-data/AUT/Faculty of Business, Economics and Law
pubs.organisational-data/AUT/Faculty of Business, Economics and Law/School of Economics
pubs.organisational-data/AUT/PBRF
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/Faculty Review Team PBRF 2018
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/School of Economics PBRF 2018
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