000			01176nam a22001457a 4500
999			_c522886 _d522886
008			230612b ||||| |||| 00| 0 eng d
100			_aLanteri, A., Medina, P and Tan, E. _941749
245			_aCapital-reallocation frictions and trade shocks
260			_aAmerican Economic Journal: Macroeconomics
300			_a15(2), Apr, 2023: p.190-228
520			_aWhat are the short-term effects of an import-competition shock on capital reallocation and aggregate productivity? To address this question, we develop a quantitative model with heterogeneous firms and capital-reallocation frictions. We discipline the model with micro data on investment dynamics of Peruvian manufacturing firms and trade flows between China and Peru. Because of large frictions in firm downsizing and exit, an import-competition shock induces a temporary aggregate-productivity loss and larger dispersion in marginal products, due to investment inaction and exit of some productive firms. Empirical evidence on the effects of trade shocks on capital reallocation supports the model mechanism.- Reproduced
773			_aAmerican Economic Journal: Macroeconomics
906			_aTRADE
942			_cAR