We develop a N-sector business cycle network model a la Long and Plosser (1983), featuring heterogenous money demand a la Bewley (1980) and Lucas (1980). Despite incomplete markets and a well-defined distribution of real money balances across heterogeneous households, the enriched N-sector...

As a form of investment, the importance of capital reallocation between firms has been increasing over time, with the purchase of used capital accounting for 25% to 40% of firms total investment nowadays. Cross- firm reallocation of used capital also exhibits intriguing business-cycle...

Practitioners and academics alike have argued that a firm's interest in its short-term capital market valuation (short-termism) is harmful to the firm's long-term profit. Their argument is intuitive -- when a firm exhibits short-termism, its decision making will cater to the short-term at the...