Misallocation and financial frictions: The role of long-term financing
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DOI: 10.1016/j.red.2020.09.002
Abstract: Abstract We analyze misallocation of capital in a model where firms face different types of financial constraints. Private firms borrow subject to a collateral constraint while public firms issue long-term bonds subject to default risk.… read more here.
Keywords: misallocation financial; financial frictions; public firms; long term ... See more keywords