Chaurey, Ritam; Manghnani, Ruchita; Perego, Viviana M. E.; … - 2022
This paper measures trends in factor misallocation in India between 1999 and 2014, using data from a rich panel of Indian firms. The misallocation of a factor is modeled as an adjustment cost, that is, an implicit variable cost incurred by a firm when using that factor. Trends in the adjustment...