We analyze the constrained-efficient allocation in an equilibrium model of investment and capital reallocation with heterogeneous firms facing collateral constraints. The features two types pecuniary externalities: externalities, because resale price affects firms’ ability to borrow, distributive buyers old are more financially constrained than sellers, consistent empirical evidence. show analy...

Using a difference-in-difference methodology, we find that the state-level banking deregulation of local U.S. credit markets leads to significant increases in the reallocation of labor within local industries towards firms with higher marginal products of labor. Using firm production functions estimated with plant-level data, we propose and examine an approach that quantifies the industry produ...

Given stock allocation in an inventory system, it is necessary to do reallocation periodically to address inventory imbalance and maximize availability. In this paper, we allow two opportunities to perform reallocation within a replenishment cycle. We derive a mathematical model to dynamically determine when to reallocate and how to reallocate. Experimental results show that multiplereallocatio...

We consider the problem of reallocating the total initial endowments of an infinitely divisible commodity among agents with single-peaked preferences. With the uniform reallocation rule we propose a solution which satisfies many appealing properties, describing the effect of population and endowment variations on the outcome. The central properties which are studied in this context are populati...