Private Equity's Unintended Dark Side: On the Economic Consequences of Excessive Delistings

摘要: Over the past two decades, private equity has contributed to a shrinking of U.S. stock market. We develop political economy model activity study wider economic consequences this trend. show that and social incentives delist firms from market are not always aligned. Private could inadvertently impose an externality on by reducing citizen-investors' exposure corporate profits thus undermining popular support for business-friendly policies. This can lead long-term reductions in aggregate investment, productivity, employment.