Capital reallocation and liquidity

Journal of Monetary Economics

Volumn 53, Issue 3, 2006, Pages 369-399

  Eisfeldt, Andrea L ^a   Rampini, Adriano A ^a  

^a NORTHWESTERN UNIVERSITY   (United States)

Author keywords

Business cycle; Capital reallocation; Frictions; Liquidity

Indexed keywords

EID: 33645921348     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2005.04.006     Document Type: Article

References (52)

1. Abel A.B., and Eberly J.C. A unified model of investment under uncertainty. American Economic Review 84 (1994) 1369-1384
2. Abel, A.B., Eberly, J.C., 2002. Investment and q with fixed costs: an empirical analysis. Working paper, University of Pennsylvania and Northwestern University.
3. Abraham K.G., and Katz L.F. Cyclical unemployment: sectoral shifts or aggregate disturbances. Journal of Political Economy 94 (1986) 507-522
4. Akerlof G.A., Rose A.K., and Yellen J.L. Job switching and job satisfaction in the U.S. labor market. Brookings Papers on Economic Activity 1988 2 (1988) 495-582
5. Andrade G., Mitchell M., and Stafford E. New evidence and perspectives on mergers. Journal of Economic Perspectives 15 (2001) 103-120
6. Basu, S., Fernald, J.G., Kimball, M.S., 2001. Are technology improvements contractionary? Working paper, University of Michigan and Federal Reserve Bank of Chicago.
7. Bernanke B., and Gertler M. Agency costs, net worth, and business fluctuations. American Economic Review 79 (1989) 14-31
8. Boeri T. Is job turnover countercyclical?. Journal of Labor Economics 14 (1996) 603-625
9. Brainard S.L., and Cutler D.M. Sectoral shifts and cyclical unemployment reconsidered. Quarterly Journal of Economics 108 (1993) 219-243
10. Caballero R.J. Aggregate investment. In: Taylor J.B., and Woodford M. (Eds). Handbook of Macroeconomics vol. 1B (1999), North-Holland, Amsterdam 813-862
11. Caballero R.J., and Hammour M.L. Institutions, restructuring, and macroeconomic performance. In: Drèze J. (Ed). Advances in Macroeconomic Theory (2001), Palgrave, New York 171-193
12. Caballero R.J., and Hammour M.L. The cost of recessions revisited: a reverse-liquidationist view. Review of Economic Studies 72 (2005) 313-341
13. Caballero R.J., Engel E.M., and Haltiwanger J.C. Plant-level adjustment and aggregate investment dynamics. Brookings Papers on Economic Activity 1995 2 (1995) 1-54
14. Campbell J., Lettau M., Malkiel B.G., and Xu Y. Have individual stocks become more volatile? An empirical exploration of idiosyncratic risk. Journal of Finance 56 (2001) 1-44
15. Cooley T.F., and Prescott E.C. Economic growth and business cycles. In: Cooley T.F. (Ed). Frontiers of Business Cycle Research (1995), Princeton University Press, Princeton 1-38
16. Cooper, R.W., Haltiwanger, J.C., 2000. On the nature of adjustment costs. NBER Working Paper 7925.
17. Cummins J., and Violante G. Investment-specific technical change in the U.S. (1947-2000): measurement and macroeconomic consequences. Review of Economic Dynamics 5 (2002) 243-284
18. Davis S.J., and Haltiwanger J. On the driving forces behind cyclical movements in employment and job reallocation. American Economic Review 89 (1999) 1234-1258
19. Davis S.J., Haltiwanger J., and Schuh S. Job Creation and Destruction (1996), MIT Press, Cambridge
20. Dixit A.K. The art of smooth pasting. In: Lesourne J., and Sonnenschein H. (Eds). Fundamentals of Pure and Applied Economics vol. 55 (1993), Harwood Academic Publishers, Reading
21. Eisfeldt A.L. Endogenous liquidity in asset markets. Journal of Finance 59 (2004) 1-30
22. Foote C.L. Trend employment growth and the bunching of job creation and destruction. Quarterly Journal of Economics 113 (1998) 809-834
23. Greenwood J., Hercowitz Z., and Krusell P. Long-run implications of investment-specific technological change. American Economic Review 87 (1997) 342-362
24. Greenwood J., Hercowitz Z., and Krusell P. The role of investment-specific technological change in the business cycle. European Economic Review 44 (2000) 91-115
25. Hall, R.E., 2005. Employment efficiency and sticky wages: evidence from flows in the labor market. Review of Economics and Statistics 87, 397-407.
26. Hodrick R.J., and Prescott E.C. Postwar U.S. business cycles: an empirical investigation. Journal of Money, Credit and Banking 29 (1997) 1-16
27. Holmström B., and Kaplan S. Corporate governance and merger activity in the U.S.: making sense of the 80's and 90's. Journal of Economic Perspectives 15 (2001) 121-144
28. Jovanovic B., and Rousseau P.L. The Q-theory of mergers. American Economic Review Papers and Proceedings 91 (2002) 336-341
29. Kiyotaki N., and Moore J. Credit cycles. Journal of Political Economy 105 (1997) 211-248
30. Lang L., Stulz R., and Walkling R. Managerial performance, Tobin's Q, and the gains from successful tender offers. Journal of Financial Economics 24 (1989) 137-154
31. Lang L., Poulsen A., and Stulz R. Firm performance, asset sales and the costs of managerial discretion. Journal of Financial Economics 37 (1995) 3-37
32. Lilien D.M. Sectoral shifts and cyclical unemployment. Journal of Political Economy 90 (1982) 777-793
33. Lucas Jr. R.E., and Prescott E.C. Equilibrium search and unemployment. Journal of Economic Theory 7 (1974) 188-204
34. Lo A.W., and Wang J. Trading volume: definitions, data analysis, and implications of portfolio theory. Review of Financial Studies 13 (2000) 257-300
35. Loungani P., Rush M., and Tave W. Stock market dispersion and unemployment. Journal of Monetary Economics 25 (1990) 367-388
36. Maksimovic V., and Phillips G. Asset efficiency and reallocation decisions of bankrupt firms. Journal of Finance 53 (1998) 1619-1643
37. Maksimovic V., and Phillips G. The market for corporate assets: who engages in mergers and asset sales and are there efficiency gains?. Journal of Finance 56 (2001) 2019-2065
38. Newey W.K., and West K.D. A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix. Econometrica 55 (1987) 703-708
39. Pulvino T.C. Do asset fire sales exist? An empirical investigation of commercial aircraft transactions. Journal of Finance 53 (1998) 939-978
40. Ramey, V.A., Shapiro, M.D., 1998a. Capital churning. Working Paper, University of California, San Diego, and University of Michigan.
41. Ramey V.A., and Shapiro M.D. Costly capital reallocation and the effects of government spending. Carnegie-Rochester Conference Series on Public Policy 48 (1998) 145-194
42. Ramey V.A., and Shapiro M.D. Displaced capital: a study of aerospace plant closings. Journal of Political Economy 109 (2001) 958-992
43. Rampini A.A. Entrepreneurial activity, risk, and the business cycle. Journal of Monetary Economics 51 (2004) 555-573
44. Rogerson R. An equilibrium model of sectoral reallocation. Journal of Political Economy 95 (1987) 824-834
45. Schlingemann F.P., Stulz R.M., and Walkling R.A. Divestitures and the liquidity of the market for corporate assets. Journal of Financial Economics 64 (2002) 117-144
46. Schoar A. Effects of corporate diversification on productivity. Journal of Finance 57 (2002) 2379-2403
47. Schuh, S., Triest, R.K., 1998. Job reallocation and the business cycle: new facts for an old debate. In: Fuhrer, J.C., Schuh, S. (Eds.), Beyond Shocks: What Causes the Business Cycle? Proceedings from the Federal Reserve Bank of Boston Conference Series, vol. 42, pp. 271-337.
48. Servaes H. Tobin's Q and the gains from takeovers. Journal of Finance 46 (1991) 409-419
49. Shleifer A., and Vishny R.W. Liquidation values and debt capacity: a market equilibrium approach. Journal of Finance 47 (1992) 1343-1366
50. Simmons, P. (Ed.), 2000. Housing Statistics of the United States, third ed. Bernan Press, Lanham, MD.
51. Stein J.C. Prices and trading volume in the housing market: a model with down-payment effects. Quarterly Journal of Economics 110 (1995) 379-406
52. Storesletten K., Telmer C.I., and Yaron A. Cyclical dynamics in idiosyncratic labor market risk. Journal of Political Economy 112 (2004) 695-717