Capital reallocation and liquidity

• 成果类型: Article
• 署名作者: Eisfeldt, Andrea L.; Rampini, Adriano A.
• 署名单位: Northwestern University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.04.006
• 发表日期: 2006
• 页码: 369-399
• 关键词: capital reallocation; liquidity; frictions; business cycle

摘要

This paper shows that the amount of capital reallocation between firms is procyclical. In contrast, the benefits to capital reallocation appear countercyclical. We measure the amount of reallocation using data on flows of capital across firms and the benefits to capital reallocation using several measures of the cross-sectional dispersion of the productivity of capital. We then study a calibrated model economy where capital reallocation is costly and impute the cost of reallocation. We find that the cost of reallocation needs to be substantially countercyclical to be consistent with the observed joint cyclical properties of reallocation and productivity dispersion. (c) 2006 Elsevier B.V. All rights reserved.