Finance and Misallocation: Evidence from Plant-level Data
---- Acknowledgements -----
We thank Vivian Yue for many useful discussions during an early stage of this project. We thank Richard Rogerson, our discussant, for very helpful comments on an earlier version of this paper. We have also benefited from conversations with Paco Buera, Andres Rodriguez-Claire, Mark Gertler, Joe Kaboski, Tim Kehoe, Bob Lucas and Yongseok Shin. Matthias Lux provided excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.