E22

Jess Benhabib · Feng Dong · Pengfei Wang · Zhenyang Xu

Layer 1 — Overview Research Question. Why do corporate defaults cluster in recurring episodes rather than occurring smoothly? The paper asks whether observable fundamental factors — firm …

Bruno Pellegrino · Enrico Spolaore · Romain Wacziarg

Overview Research Question. Why do observed international investment positions and cross-country differences in rates of return to capital fail to conform to a frictionless capital-market benchmark? …

Galina Vereshchagina

This paper quantifies how idiosyncratic firm-level risk affects aggregate output, TFP, and firm life-cycle growth in an environment where firm productivity evolves endogenously through risky …

Aimé Bierdel · Andres Drenik · Juan Herreño · Pablo Ottonello

The paper develops a quantitative capital-accumulation model in which capital trades in illiquid markets with asymmetric information — sellers know the quality of their capital but buyers do not. It …

Lassi Ahlvik · Jørgen Juel Andersen · Jonas Hveding Hamang · Torfinn Harding

This paper asks three questions about supply-side climate policies in the oil market: how do oil companies respond to production-based taxes; what are the aggregate effects of such taxes on global CO2 …

Poorya Kabir · Eugene Tan · Ia Vardishvili

Standard measures of capital allocative efficiency—based on the dispersion of the average revenue product of capital (ARPK)—are severely biased when capital utilization is endogenous. When utilization …

Julio L. Ortiz

This paper investigates the macroeconomic consequences of widespread just-in-time (JIT) inventory management, documenting a fundamental trade-off: JIT raises firm profitability and reduces micro-level …

Lu Han · L. Rachel Ngai · Kevin D. Sheedy

Layer 1 — Summary Using sales and leasing transaction records for the Greater Toronto Area (2006–2018), this paper finds three novel effects of a higher property transaction tax: higher buy-to-rent …