We argue that capital misallocation arises endogenously due to incomplete consumption insurance. We model risk-averse entrepreneurs with heterogeneous productivity who face idiosyncratic output shocks and choose how much capital to rent before uncertainty unfolds. We show that incomplete markets...

This paper provides evidence on the nature of financial constraints faced by women entrepreneurs, especially in contexts of stringent social norms. Using micro-data from the World Bank Enterprise Surveys for 61 countries, the analysis shows that formal firms managed by women do not face credit...

Background: Each disaster has its specific resource requirements, varying based on its size, location, and the affected region's socio-economic level. Pre-disaster planning and post-disaster dynamic resource allocation including material and human resources is essential. Methods: To address the...

This paper characterizes the short- and long-run Cournot equilibrium with heterogeneous firms and stochastic technological change. In our model, firms have different technologies with heterogeneous fixed and variable costs and various degrees of markups. In a framework with homogeneous firms,...

This paper examines the resource mismatch in China's healthcare sector from 2010 to 2019. We use structural efficiency to measure the resource mismatch in the healthcare industry (0.2-0.7). We find that an increase in the proportion of private hospitals decreases the healthcare resource mismatch...

Children tend to choose the same occupations as their parents. We examine the implications of this tendency for talent allocation and intergenerational mobility. Using Swedish data on skills and personality traits, we estimate a general equilibrium Roy model with unequal occupational access...

Firm performance depends critically on the efficient allocation of tasks across employees. Yet, task assignment decisions are often shaped not only by productivity considerations but also by managerial biases and gender stereotypes-frequently resulting in women being disproportionately assigned...

We study a large market model of dynamic matching with no monetary transfers and a continuum of agents who have to be assigned items at each date. When the social planner can only elicit ordinal agents' preferences, we prove that under a mild regularity assumption, incentive compatible and...

We examine the effects of international trade in the presence of a set of domestic distortions giving rise to informality, a prevalent phenomenon in developing countries. In our quantitative model, the informal sector arises from burdensome taxes and regulations that are imperfectly enforced by...

We analyze how corporate reorganization and liquidation change labor reallocation during bankruptcy using randomized judge assignments and linked Portuguese employer-employee and firm data. Reorganization reduces the negative effect of bankruptcy on employee earnings, even with most workers...

How does Artificial Intelligence (AI) affect the task content of work, and how do workers adjust to the diffusion of AI in the economy? To answer these important questions, we combine novel patent-based measures of AI and robot exposure with individual survey data on tasks performed on the job...

We examine a setting of independent private value auctions where bidders can covertly acquire gradual information about their valuations. We demonstrate that a dynamic pivot mechanism implements the rst-best information acquisition and allocation rule. We apply our results to a commonly used...

For the scientific understanding and correct adjustment of domestic and foreign economic operations, both academic research and policy-making require the analysis of the relationship between the proportion principle of labor distribution, market mechanism and state economic adjustment. The...

How does Artificial Intelligence (AI) affect the task content of work, and how do workers adjust to the diffusion of AI in the economy? To answer these important questions, we combine novel patent-based measures of AI and robot exposure with individual survey data on tasks performed on the job...

We analyze how corporate reorganization and liquidation change labor reallocation during bankruptcy using randomized judge assignments and linked Portuguese employer-employee and firm data. Reorganization reduces the negative effect of bankruptcy on employee earnings, even with most workers...

A water allocation mechanism is the combination of institutions which enable water users and water uses to use, take or to receive water for beneficial use according to a recognised system of rights and priorities (Taylor, 2002). It defines who is allowed to access water, how much may be used or...