X < back
X
Search
Home/Seminar

英文首页

Finance, Managerial Inputs, and Misallocation

2022-12-02

Time: 10:00 am-11:30 am, Dec. 2nd, 2022

Platform: Zoom

Speaker: Xiaodong Zhu

(The University of Hong Kong)

Link: https://us06web.zoom.us/j/81626164288?pwd=Zmp1VG41dXF0by9UZTBRVkxSbjJWZz09

Meeting ID: 816 2616 4288

Passcode: inse

 

Abstract:

In standard macro-finance models, financial constraints mainly affect small or young firms but not large or old ones due to the self-financing mechanism, and the dispersion of marginal revenue product of capital (MRPK) of a firm cohort is less persistent than in the data. We extend a standard model by allowing firms to hire managers and large firms hire disproportionately more managers, consistent with data. In our model, financial constraints and the dispersion of MRPK persist, and even large firms are likely to be constrained. The productivity loss from financial frictions is also substantially amplified.

 

 

Speaker:

 

 

Professor Xiaodong Zhu is an economics professor in the Faculty of Business and Economics at the University of Hong Kong, and a professor emeritus at the University of Toronto. His main research areas are macroeconomics, growth and development, and the Chinese economy. He is a leading expert on the Chinese economy and his research on China has been published in top economics journals such as the American Economic ReviewJournal of Political EconomyJournal of Monetary EconomicsInternational Economic ReviewJournal of Development EconomicsReview of Economic Dynamics, and Journal of Economic Perspectives. He was a co-editor of the China Economic Review and is on the editorial boards of several other economic journals. He obtained his Ph.D. in economics from University of Chicago in 1991.