讲座：Do Financial Frictions Explain Chinese Firms’ Saving and Misallocation
题 目：Do Financial Frictions Explain Chinese Firms’ Saving and Misallocation
演讲人： Professor Yan BAI, Department of Economics, University of Rochester
主持人： 董丰 博士 上海交通大学安泰经济与管理学院金融系
时 间： 2017年6月19日14:30-16:00
地 点： 上海交通大学 徐汇校区新上院S207
This paper uses Chinese firm-level data to quantify financial frictions in China and asks to what extent they can explain firms’ saving and capital misallocation. We first document features of the data, in terms of firm dynamics and financing. Relatively smaller firms have lower leverage, face higher interest rates and operate with a higher marginal product of capital. We then develop a heterogeneous firm model with two types of financial frictions, default risk and a fixed cost of issuing loans. We estimate the model using evidence on the firm size distribution and financing patterns and find that financial frictions can explain aggregate firm saving, the co-movement between saving and investment across firms, and around 60 percent of the dispersion in the marginal product of capital (MPK). The endogenous financial frictions, however, generate an opposite MPK-size relationship, which has important implications for total factor productivity losses.
Professor Yan BAI is an associate professor at Department of Economics, University of Rochester. Professor Bai obtained her PhD in Economics from University of Minnesota. The main research interests of Professor Bai are International Economics and Macroeconomics. Her research has been published in journals including Econometrica, Journal of Monetary Economics, and Journal of International Economics, etc.