000			01206nam a22001457a 4500
999			_c522441 _d522441
008			230411b ||||| |||| 00| 0 eng d
100			_aLanteri, Andrea and Rampini, Adriano A. _940046
245			_aConstrained-efficient capital reallocation
260			_aThe American: Economic Reviews
300			_a113(2), Feb, 2023: p. 354-395
520			_aWe 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			_aThe American: Economic Reviews
906			_aINVEESTMENT
942			_cAR