Economics at your fingertips  

Capital Reallocation

Andrea Eisfeldt and Yu Shi

No 25085, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Capital reallocation is procyclical, despite measured productive reallocative opportunities being acyclical, or even countercyclical. This paper reviews the advances in the literature studying the causes and consequences of capital reallocation (or lack thereof). We provide a comprehensive set of capital reallocation stylized facts for the US, and an illustrative model of capital reallocation in equilibrium. We relate capital reallocation to the broader literatures on business cycles with financial frictions, and on resource misallocation and aggregate productivity. Throughout, we provide directions for future research.

JEL-codes: E13 E22 E3 E32 E44 G31 G34 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published as Andrea L. Eisfeldt & Yu Shi, 2018. "Capital Reallocation," Annual Review of Financial Economics, vol 10(1), pages 361-386.

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

Page updated 2020-09-16
Handle: RePEc:nbr:nberwo:25085