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학술저널

Capital Reallocation and Liquidity with Search Frictions

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I construct a model of an asset market subject to search frictions, in an environment where both investment and asset liquidity are determined endogenously. This provides a natural framework to analyze the interaction between capital reallocation and liquidity in response to aggregate shocks, which I assess quantitatively. The search model of capital reallocation exhibits strong internal propagation, and can generate substantial changes in factor utilization following aggregate shocks.

Abstract

1. INTRODUCTION

2. MODEL

3. CALIBRATION

4. COMPARISON WITH SEARCH MODEL OF UNEMPLOYMENT

5. KURMANN AND PETROSKY-NADEAU (2007)

6. CONCLUSION

APPENDIX

REFERENCES

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