The Utilization Premium

This paper benefited from comments by two anonymous referees, an anonymous associate editor, and the decision editor (Lukas Schmid) and suggestions from Max Croce, Ric Colacito, Winston Dou (discussant), Eric Ghysels, Erik Loualiche (discussant), Christian Lundblad, Jun Li (discussant), Marcelo Ochoa, Dimitris Papanikolaou, Nick Roussanov, Jincheng Tong (discussant), Miao Ben Zhang (discussant), Harold Zhang, and seminars participants at the 2019 Midwest Finance Association annual meeting, 2019 Northern Finance Association meeting, 2019 Fall University of Texas Dallas Finance Conference, 2020 Review of Asset Pricing Studies Winter Conference, 2020 Australasian Finance & Banking Conference, 2021 Eastern Finance Association annual meeting, and the University of North Carolina at Chapel Hill. All errors are our own.