Bohacek, Radim; Rodríguez-Mendizábal, Hugo - Departament d'Economia i Història Econòmica, … - 2011
In this paper we analyze productivity and welfare losses from capital misallocation in a general equilibrium model of occupational choice and endogenous financial intermediation. We study the effects of borrowing and lending, insurance, and risk sharing on the optimal allocation of resources. We...