Frictional capital reallocation I : ex ante heterogeneity / by Randall Wright, Sylvia Xiaolin Xiao and Yu Zhu.: FB3-5/2019-4E-PDF
"This paper studies dynamic general equilibrium models where firms trade capital in frictional markets. Gains from trade arise due to ex ante heterogeneity: some firms are better at investment, so they build capital in the primary market; others acquire it in the secondary market. Cases are considered with random search and bargaining, or directed search and posting. For each, we provide results on existence, uniqueness, efficiency and comparative statics. Monetary and fiscal policy are discussed at length. We also discuss how productivity dispersion can be countercyclical while capital reallocation and its price are procyclical"--Abstract.
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| Department/Agency | Bank of Canada. |
|---|---|
| Title | Frictional capital reallocation I : ex ante heterogeneity / by Randall Wright, Sylvia Xiaolin Xiao and Yu Zhu. |
| Series title | Bank of Canada staff working paper, 1701-9397 ; 2019-4 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "January 2019." Includes bibliographic references. Includes abstract in French. |
| Publishing information | Ottawa, Ontario : Bank of Canada, 2019. |
| Author / Contributor | Wright, Randall. Xiao, Sylvia Xiaolin. Zhu, Yu, 1966- |
| Description | ii, 41 p. |
| Catalogue number |
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| Subject terms | Monetary policy Capital |
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