TY  - JOUR
AU  - Eisfeldt, Andrea L
AU  - Shi, Yu
TI  - Capital Reallocation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 25085
PY  - 2018
Y2  - September 2018
DO  - 10.3386/w25085
UR  - http://www.nber.org/papers/w25085
L1  - http://www.nber.org/papers/w25085.pdf
N1  - Author contact info:
Andrea L. Eisfeldt
Anderson School of Management
University of California at Los Angeles
110 Westwood Plaza
Suite C4.10
Los Angeles, CA 90095
E-Mail: andrea.eisfeldt@anderson.ucla.edu

Yu Shi
E-Mail: yu.shi.1@anderson.ucla.edu
AB  - Capital reallocation is procyclical, despite measured productive reallocative opportunities being acyclical, or even countercyclical.  This paper reviews the advances in the literature studying the causes and consequences of capital reallocation (or lack thereof).  We provide a comprehensive set of capital reallocation stylized facts for the US, and an illustrative model of capital reallocation in equilibrium.  We relate capital reallocation to the broader literatures on business cycles with financial frictions, and on resource misallocation and aggregate productivity.  Throughout, we provide directions for future research.
ER  -