This paper studies the misallocation of intermediate inputs in China’s firm-leveldata, eliminating which would increase the average industry’s gross output by 2.93%.We document evidence of pre-pay and financial frictions on intermediate inputs behindthe misallocation. We build these...

The British Railway Mania of the 1840s was by many measures the greatest technology mania in history, and its collapse was one of the greatest financial crashes. It has attracted surprisingly little scholarly interest. In particular, it has not been noted that it provides a convincing...

This paper investigates the impacts of superstar firms and their cash hoarding behaviors on capital misallocation through the lens of an endogenous firm-market boundary. Empirically I find that since the 1980s, capital allocation efficiency has been deteriorating in the United States. To explain...

We introduce permanently-shifting income shares into a standard growth model with two types of agents. Capital owners represent the top quintile of U.S. households while workers represent the remainder. Our tractable model allows us to exactly replicate the observed U.S. time paths of the top...

The pandemic has speeded up the digital transformation of Spanish society. Cloud computing, data analytics and remote interactions have become even more essential, forming the basis for a new industrial and commercial reality in which large technology companies (BigTechs) are at an advantage....

On 7 September 2021, El Salvador became the first jurisdiction to adopt bitcoin as legal tender. This initiative has raised as much enthusiasm as it has scepticism and potentially opens the door for other countries to follow suit. The initiative is underpinned by a law passed by the Legislative...

Since the 1980s, financial crises have tended to reoccur with increasing frequency and growing intensity. They are endogenously generated by the established OTD (Originate-To-Distribute) model within the new finance-growth paradigm. Good finance fosters the correct allocation of financial...

In this paper, we study the relationship between income inequality and stock market returns. We develop a quantitative general equilibrium model that links shifts in both labour and capital income inequality to stock market variables. An increase of the share of capital owners' income from risky...

We identify an inflationary technology news shock as the leading source of business cycle variations for the postwar U.S. economy. This shock acts like a demand shock: it induces strong positive comovement in real quantities - GDP, consumption, investment - and weak positive comovement between...

This article focuses on the relationship between Fintech and bank risk-taking behavior. Since Robo-Advisor is one of the mature applications of Fintech, we found that the development of Fintech will have a greater impact on small and medium-sized banks through the establishment of a Robo-Advisor...