We model the human brain as the ultimate scarce, efficient, and rational resource that first must optimize on itself before optimizing on the resources available in the external world. We show that a new unified explanation for the equity premium puzzle, countercyclical equity premia, value...

We investigate the nature and extent of reallocation occurring within the Indian income distribution, with a particular focus on the dynamics of the bottom of the distribution. We argue that income evolution is appropriately modeled using Geometric Brownian Motion (GBM). Specifically, we use the...

This paper studies the extent to which the cyclicality of gross and net occupational mobility shapes that of aggregate unemployment and its duration distribution. Using the SIPP, we document the relation between workers' (gross and net) occupational mobility and unemployment duration over the...

Changes in medical expenses may force hospitals to reallocate their resources, which potentially come at the detriment of healthcare quality. Using data on the universe of German hospitals, I investigate resource reallocations between capital stock, human resources, services and the...

What is the impact of organised crime on the allocation of public resources and on tax collection? This paper studies the consequences of collusion between members of criminal organisations and politicians in Italian local governments. In order to capture the presence of organised crime, we...

Drawing on firm-level expectations at a one-year forecast horizon in the Survey of Business Uncertainty (SBU), we construct novel, forward-looking reallocation measures for jobs and sales. These measures rise sharply after February 2020, reaching rates in April that are 2.4 (3.9) times the...

Policies to incentivize the adoption of renewable energy sources (RES) usually offer little flexibility to adapt to heterogeneous benefits across locations. We evaluate the geographical misallocation of RES associated with the uniform nature of subsidies. We estimate the dispersion of marginal...

The intermediary function of financial corporations is embodied in the redistribution of temporarily free funds raised from certain institutional units to those units that have a need for them. A significant part of such borrowings takes the form of deposits placed with commercial banks. Amounts...

Schemes of residual profit allocation (RPA) tax multinationals by allocating their 'routine' profits to countries in which their activities take place and sharing their remaining 'residual' profit across countries on some formulaic basis. They have recently and rapidly come to prominence in...