https://macropaperwarehouse.com/authors/andreas-moxnes/Andreas MoxnesHugo -- gohugo.ioen-usThu, 01 Jan 2026 00:00:00 +0000https://macropaperwarehouse.com/papers/strapped-for-cash-the-role-of-financial-constraints-for-innovating-firms-misallocation-and-aggregate-productivity-growth/Thu, 01 Jan 2026 00:00:00 +0000https://macropaperwarehouse.com/papers/strapped-for-cash-the-role-of-financial-constraints-for-innovating-firms-misallocation-and-aggregate-productivity-growth/<p>Firms that invest heavily in intangible assets — patents, R&amp;D, software — face a structural financing disadvantage: intangibles offer limited collateral value to banks, so intangible-intensive firms can be cut off from credit even when their marginal revenue product of capital (MRPK) exceeds the going interest rate. The paper asks how binding this collateral constraint is in practice, what relaxing it does to firm behavior, and how large the aggregate productivity and misallocation consequences are.</p>