Data and Code for: Finance, Managerial Inputs, and Misallocation

Principal Investigator(s):  View help for Principal Investigator(s) Chaoran Chen, York University; Ashique Habib, International Monetary Fund; Xiaodong Zhu, University of Hong Kong

Version:  View help for Version V1

Name File Type Size Last Modified
  Matlab-Files 01/12/2023 08:17:PM
  Stata-Files 01/12/2023 08:34:PM
README.pdf application/pdf 178.3 KB 01/12/2023 04:36:PM

Project Citation: 

Chen, Chaoran, Habib, Ashique, and Zhu, Xiaodong. Data and Code for: Finance, Managerial Inputs, and Misallocation. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-08-17. https://doi.org/10.3886/E183144V1

Project Description

Summary:  View help for Summary 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.

Scope of Project

JEL Classification:  View help for JEL Classification
      E13 General Aggregative Models: Neoclassical
      G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
      L16 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
      L26 Entrepreneurship
      O16 Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
      O41 One, Two, and Multisector Growth Models
Geographic Coverage:  View help for Geographic Coverage China
Time Period(s):  View help for Time Period(s) 1998 – 2007


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V1 [2023-08-17]

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