A Macro-Finance Model of Capital Reallocation and Misallocation
I develop a DSGE model with heterogeneous investors, in which the efficiency of risk-sharing in the financial market and the efficiency of capital allocation result in a feedback loop.
Reallocation
A Macro-Finance Model of Capital Reallocation and Misallocation
I develop a DSGE model with heterogeneous investors, in which the efficiency of risk-sharing in the financial market and the efficiency of capital allocation result in a feedback loop.