Cyclical Capital Reallocation

Wei Cui, Randall Wright and Yu Zhu
Additional contact information
Yu Zhu: Bank of Canada

No 1362, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: This paper studies economies where capital is accumulated in primary markets and reallocated in frictional secondary markets. We distinguish between reallocation in terms of either an acquisition (i.e., a full buyout) or a partial sale (i.e., sales of some property, plant or equipment). We document that in the data, the different types of reallocation exhibit different cyclicality. We then propose a theory of capital reallocation with various frictions, including search and bargaining problems, plus liquidity considerations, that generate reallocation dynamics and other aspects of the data.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (2)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:red:sed019:1362

Access Statistics for this paper

More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().