| 000 -LEADER |
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| fixed length control field |
01206nam a22001457a 4500 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION |
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| fixed length control field |
230411b ||||| |||| 00| 0 eng d |
| 100 ## - MAIN ENTRY--PERSONAL NAME |
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| Personal name |
Lanteri, Andrea and Rampini, Adriano A. |
| 245 ## - TITLE STATEMENT |
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| Title |
Constrained-efficient capital reallocation |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. (IMPRINT) |
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| Place of publication, distribution, etc |
The American: Economic Reviews |
| 300 ## - PHYSICAL DESCRIPTION |
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| Extent |
113(2), Feb, 2023: p. 354-395 |
| 520 ## - SUMMARY, ETC. |
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| Summary, etc |
We characterize efficiency in an equilibrium model of investment and capital reallocation with heterogeneous firms facing collateral constraints. The model features two types of pecuniary externalities: collateral externalities, because the resale price of capital affects collateral constraints, and distributive externalities, because buyers of old capital are more financially constrained than sellers, consistent with empirical evidence. We prove that the stationary equilibrium price of old capital is inefficiently high because the distributive externality exceeds the collateral externality, by a factor of two when we calibrate the model. New investment reduces the future price of old capital, providing a rationale for new-investment subsidies.- Reproduced |
| 773 ## - HOST ITEM ENTRY |
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| Main entry heading |
The American: Economic Reviews |
| 906 ## - LOCAL DATA ELEMENT F, LDF (RLIN) |
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| Subject DIP |
INVEESTMENT |
| 942 ## - ADDED ENTRY ELEMENTS (KOHA) |
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| Item type |
Articles |
