Discussion of Reallocating and Pricing Illiquid Capital: Two Productive Trees

• 成果类型: Article; Early Access
• 署名作者: Li, Kai
• 署名单位: Peking University; Peking University Shenzhen Graduate School (PKU Shenzhen)
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.70030
• 发表日期: 2025
• 关键词: uncertainty

摘要

This discussion of Reallocating and Pricing Illiquid Capital: Two Productive Trees by Janice Eberly and Neng Wanghighlights its tractable two-sector model with costly capital reallocation, which links diversification benefits, adjustment frictions, and asset pricing. I outline four promising directions for future research: quantifying the diversification-friction trade-off, exploring business cycle and asset pricing dynamics, examining growth under uncertainty, and connecting to the capital reallocation literature with state-dependent frictions. The model framework provides a clear and versatile framework that can guide both theoretical advances and empirical work on capital allocation, risk premia, and macro-financial dynamics.