1 option
Sectoral Booms and Misallocation of Managerial Talent: Evidence from the Chinese Real Estate Boom / Yu Shi.
- Format:
- Book
- Government document
- Author/Creator:
- Shi, Yu.
- Series:
- IMF Working Papers; Working Paper ; No. 2018/221
- IMF Working Papers
- Language:
- English
- Subjects (All):
- Investments--Accounting.
- Investments.
- Physical Description:
- 1 online resource (88 pages).
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2018.
- Summary:
- This paper identifies a new mechanism leading to inefficiency in capital reallocation at the extensive margin when an economy experiences a sectoral boom. I argue that imperfections in the financial market and capital barriers to entry in the booming sector create a misallocation of managerial talent. Using comprehensive firm-level data from China, I first provide evidence that more productive firms reallocate capital to the booming real estate sector, and demonstrate that the pattern is likely driven by fewer financial constraints on these firms. I then use a structural estimation to verify the talent misallocation. Finally, I calibrate a dynamic model and find that the without the misallocation, the TFP growth in the manufacturing sector would have improved by 0.5% per year.
- Notes:
- Description based on print version record.
- ISBN:
- 9781484378946
- 1484378946
- 9781484379004
- 1484379004
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.