Endogenous liquidity and capital reallocation / by Wei Cui, Randall Wright and Yu Zhu.: FB3-5/2022-27E-PDF
"We study economies where firms acquire capital in primary markets then retrade it in secondary markets after information on idiosyncratic productivity arrives. Our secondary markets incorporate bilateral trade with search, bargaining and liquidity frictions. We distinguish between full and partial sales (one firm gets all or some of the other’s capital). Both exhibit interesting long- and short-run patterns in data that the model can match. Depending on monetary and credit conditions, more partial sales occur when liquidity is tight. Quantitatively, we find significant steady-state and business-cycle implications. We also investigate the impact of search, taxation and persistence in firm-specific shocks"--Abstract.
Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.913460&sl=0
| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | Endogenous liquidity and capital reallocation / by Wei Cui, Randall Wright and Yu Zhu. |
| Series title | Staff working paper = Document de travail du personnel, 1701-9397 ; 2022-27 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "Last updated: June 17, 2022." Includes bibliographical references (pages 43-48). Includes abstracts in English and French. |
| Publishing information | [Ottawa] : Bank of Canada = Banque du Canada, 2022. ©2022 |
| Author / Contributor | Cui, Wei, author. |
| Description | 1 online resource (ii, 57 pages) : charts. |
| Catalogue number |
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| Subject terms | Monetary policy. Business cycles -- Mathematical models. Politique monétaire. Cycles économiques -- Modèles mathématiques. |