Finance Seminar with Mariano M. Croce, Bocconi University
The Department of Finance is proud to announce the upcoming online seminar with Mariano M. Croce, Bocconi University.
Mariano M. Croce will present:
Uncertainty-Induced Reallocations and Growth
ABSTRACT
Focusing on both micro and aggregate U.S. data, we show the existence of a significant link between aggregate uncertainty and reallocation of resources away from R&D-intensive capital. This link is important because a decrease in the aggregate share of R&D-oriented capital forecasts lower medium-term growth. In a multi-sector production economy in which (i) growth is endogenously supported by risky R&D investments, and (ii) the representative agent is volatility-risk averse and has access to other safer technologies that do not support growth, uncertainty shocks have a first-order negative impact on medium-term growth and welfare.
Location and sign up:
This is an online seminar on Zoom.
Please contact us in order to sign up.