Randall Wright - Latest
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Frictional Capital Reallocation I: Ex Ante Heterogeneity
This paper studies dynamic general equilibrium models where firms trade capital in frictional markets. Gains from trade arise due to ex ante heterogeneity: some firms are better at investment, so they build capital in the primary market; others acquire it in the secondary market. -
Innovation and Growth with Financial, and Other, Frictions
The generation and implementation of ideas, or knowledge, is crucial for economic performance. We study this process in a model of endogenous growth with frictions.