Webbonciling highly persistent productivity with a small role for self- nancing, both of which are supported by empirical observations. In quantitative studies that produce large TFP … Webbfinancing can undo capital misallocation if productivity shocks are sufficiently autocor-related. If so, financial frictions have no effect on aggregate productivity. Conversely, …

Productivity Losses from Financial Frictions - Princeton University

WebbFinance and productivity. Mounting empirical evidence demonstrates that finance is an important contributor to productivity growth, but there are also productivity losses due to financial frictions (7 direct analyses reviewed). Both single-country and cross-country studies agree that a range of different financial WebbBenjamin Moll, 2014. "Productivity Losses from Financial Frictions: Can Self-Financing Undo Capital Misallocation?," American Economic Review, American Economic Association, vol. 104(10), pages 3186-3221, October. Timothy Kehoe & Sewon Hur & Kim Ruhl & Jose Asturias, 2015. chit chat about eric

Leverage and productivity - ScienceDirect

WebbLimiting global warming to well below 2 °C may pose threats to macroeconomic and financial stability. In an estimated Euro Area New Keynesian model with financial frictions and climate policy, we study the possible perils of a low-carbon transition and evaluate the role of monetary policy and financial regulation. We show that, even for very ambitious … Webb15 sep. 2008 · productivity losses (Benigno et al., 2015; Borio et al., 2016; Gopinath et al., 2024). Our paper does not directly relate to this literature, as our focus is not on misallocation of resources between firms but instead on the much-less researched impact of financial frictions for within-firm productivity growth. 3 Webbas default events are typically associated with productivity losses and elevated inflation. Similar to standard monetary models, inflation is determined by firms’ pricing decisions, ... and financial frictions in small open economies, such asFarhi and Werning(2012),Fanelli(2024),Devereux et al.(2024), andItskhoki and Mukhin(2024). 2 … graph volatility