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 Review, Journal of Political Economy, Journal of Monetary Economics, International Economic Review, Journal of Development Economics, Review 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.