Oxford Events, the new replacement for OxTalks, will launch on 16th March. From now until the launch of Oxford Events, new events cannot be published or edited on OxTalks while all existing records are migrated to the new platform. The existing OxTalks site will remain available to view during this period.
From 16th, Oxford Events will launch on a new website: events.ox.ac.uk, and event submissions will resume. You will need a Halo login to submit events. Full details are available on the Staff Gateway.
We analyze the constrained-efficient allocation in an equilibrium model of investment and capital reallocation with heterogeneous firms facing collateral constraints. More financially constrained firms buy old capital, consistent with empirical evidence. Thus, new investment induces a positive externality by reducing the future price of old capital, fostering reallocation toward more constrained firms. The equilibrium price of old capital is inefficiently high in general, because this distributive pecuniary externality exceeds the collateral externality, by a factor two in the calibrated model. The constrained-efficient allocation induces a consumption-equivalent welfare gain of 5\% compared to the competitive equilibrium, and can be implemented with subsidies on new capital and taxes on old capital.
Link to paper: drive.google.com/file/d/1XxbO20XFDsbuSlh4fe4Pj1-zvb70W0to/view
