diminishing returns to the number of workers. We examine the sorting of factors to sectors and the matching of factors within …

This paper studies policy in a class of economies in which information about commonly-relevant fundamentals -- such as …, the decentralized use of information can fail to be efficient either because of discrepancies between private and social … second case, inefficiency manifests itself in suboptimal social learning (low quality of information contained in …

complementarity or substitutability, and incomplete information. In equilibrium, complementarity amplifies aggregate volatility by … increasing the sensitivity of actions to public information; substitutability raises cross-sectional dispersion by increasing the … sensitivity to private information. To address whether these effects are undesirable from a welfare perspective, we characterize …

How do public and private information affect equilibrium allocations and social welfare in economies with investment … complementarities? And what is the optimal transparency in the information conveyed, for example, by economic statistics, policy … is unique no matter the structure of information. An increase in the precision of public information may have the …