We propose a theory linking imperfect information to resource misallocation and hence to
aggregate productivity and output. In our setup, firms look to a variety of noisy information …

Capital reallocation is procyclical, despite measured productive reallocative opportunities
being acyclical or even countercyclical. This article reviews the advances in the literature …

This paper examines the impact of mandatory reporting and auditing of firms' financial
statements on industry‐wide resource allocation. Using threshold‐induced variation in the …

Using the market for initial coin offerings (ICOs) as a laboratory, we provide evidence that
entrepreneurs use retention to alleviate information asymmetry. The underlying technology …

In China, the government uses subsidies and regulations as means to intervene in the waste
from electrical and electronic equipment (WEEE or e-waste) recycling market. We propose a …

A central result in the theory of adverse selection in asset markets is that informed sellers
can signal quality and obtain higher prices by delaying trade. This paper provides some of …

We examine how a fixed capital supply shortage affects firm investment. Using equipment
transaction–level data, we find pandemic-driven production disruptions significantly altered …

We propose an information‐based theory to explain time variation in liquidity and link it to a
variety of patterns in asset markets. In “normal times,” the market is fully liquid and gains …

To understand the link between financial intermediation activities and the real economy, we
build a general equilibrium model in which agency frictions in the financial sector affect the …

We develop a rational theory of liquidity sentiments in which the market outcome in any
given period depends on agents' expectations about market conditions in future periods. Our …