Capital reallocation and liquidity with search frictions

Yong Jin Kim

Research output: Contribution to journalArticlepeer-review


I construct a model of an asset market subject to search frictions, in an environment where both investment and asset liquidity are determined endogenously. This provides a natural framework to analyze the interaction between capital reallocation and liquidity in response to aggregate shocks, which I assess quantitatively. The search model of capital reallocation exhibits strong internal propagation, and can generate substantial changes in factor utilization following aggregate shocks.

Original languageEnglish
Pages (from-to)1-29
Number of pages29
JournalJournal of Economic Theory and Econometrics
Issue number1
Publication statusPublished - 2012 Mar

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


Dive into the research topics of 'Capital reallocation and liquidity with search frictions'. Together they form a unique fingerprint.

Cite this