How do banks facilitate creative destruction and shape firm turnover? We develop a dynamic general equilibrium model of bank credit reallocation with endogenous firm entry and exit that allows for both theoretical and quantitative analysis. By restructuring loans to firms with poor prospects and...

Forschung, Bildung und Wachstum -- Soziale Mobilität und Ungleichheit. - Arbeitsmarkt und Sozialpolitik -- Steuern und Staat -- Industriepolitik und internationaler Handel -- Geldpolitik, Banken und Finanzierung -- Unternehmen und industrieller Wandel.

How do banks facilitate creative destruction and shape firm turnover? We develop a dynamic general equilibrium model of bank credit reallocation with endogenous firm entry and exit that allows for both theoretical and quantitative analysis. By restructuring loans to firms with poor prospects and...