To conclude our 2025–26 Stone Inequality Seminar Series, the Stone Centre is pleased to welcome Anmol Bhandari, who will be presenting his paper titled, “Capital Reallocation and Private Firm Dynamics.”
Abstract
We develop a theory of firm dynamics and capital reallocation in private firms and use it to study the taxation of business income, capital, and capital gains. Intangible assets—such as customer bases and trade names—are created using owners’ time and are infrequently traded in bilateral meetings. We discipline the model with U.S. administrative data, which report purchase prices and counterparties in asset transfers, allowing us to calibrate the investment technology and output elasticity for otherwise unobservable intangible capital. The equilibrium features dispersion in marginal product of capital, transferable share of firm value, and return on business wealth. Introducing taxation, we find that capital gains taxes are most distortionary, primarily by discouraging entry and reallocation of capital, whereas income taxes are least distortionary
Event Details
Date: December 8, 2025
Time: 3:30 – 5:00pm
Location: Iona 533, 6000 Iona Dr, Vancouver, BC
—
Anmol Bhandari is a consultant at the Federal Reserve Bank of Minneapolis, where he was previously a visiting scholar, and an associate professor of economics at the University of Minnesota, where he has taught since 2015. He also serves as president of the Minnesota Economics Association.
Anmol received a B.A. in commerce from the University of Pune, an M.A. in economics from the Delhi School of Economics, and a Ph.D. in economics from New York University. His research centers on public finance, asset pricing, and quantitative macroeconomics.
Anmol’s work has been published in the Quarterly Journal of Economics, Econometrica, and the Journal of Monetary Economics, among other venues. He is currently an associate editor for the Review of Economic Dynamics and an editor for the Journal of Political Economy: Macroeconomics.