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作者：Arellano, Cristina; Bai, Yan; Zhang, Jing
作者单位：University of Rochester; University of Michigan System; University of Michigan; National Bureau of Economic Research; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
摘要：Using comprehensive firm-level datasets, this paper studies the impact of cross-country variation in financial market development on firms' financing choices and growth. In less financially developed economies, small firms grow faster and have lower leverage than large firms. As financial development improves, the growth difference between small and large firms shrinks, while the leverage difference rises. The paper then develops a quantitative model where financial frictions drive firm growth...
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作者：Mueller, Ulrich K.
作者单位：Princeton University
摘要：In large Bayesian models, such as modern DSGE models, it is difficult to assess how much the prior affects the results. This paper derives measures of prior sensitivity and prior informativeness that account for the high dimensional interaction between prior and likelihood information. The basis for both measures is the derivative matrix of the posterior mean with respect to the prior mean, which is easily obtained from Markov Chain Monte Carlo output. We illustrate the approach by examining p...
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作者：Armenter, Roc; Lahiri, Amartya
作者单位：University of British Columbia
摘要：Cross-country income gaps are large in the data. Can observed investment prices account for these gaps? Our model adds an extensive margin to the neoclassical growth model by allowing for entry of firms. When combined with a returns to variety effect, our model provides an amplification mechanism from investment prices to output. Using cross-country data on relative investment prices, the model can explain up to 5 to 6-fold income differences between the richest and poorest countries in our sa...
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作者：Johnson, Timothy C.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign
摘要：Using a long time-series of U.S. income inequality, I find that the market pays higher prices for assets that hedge against increased inequality. This is consistent with the prediction of an incomplete-markets model incorporating preferences over both comparative and noncomparative consumption goods when the weight on the former is large. The model implies that the time-series properties of the premium can be used to identify the substitutability of these two sources of utility. There is evide...
