We consider a tractable model of heterogeneous production units that features endogenous entry and productivity … standard factor misallocation framework, policy distortions featuring a positive productivity elasticity of distortions imply … larger reductions in output through smaller investments in establishment productivity. A calibrated version of the model …

provide a microfoundation for aggregate productivity shocks. Existing research has focused on using aggregate shocks to …

) productivity growth, as more productive businesses displace less productive ones. However, this research has been limited by the … productivity measures. If prices reflect idiosyncratic demand or market power shifts, high "productivity" businesses may not be … selection and productivity growth using data from industries where we observe producer-level quantities and prices separately …

to US data. In the context of this model we argue that differences in the allocation of resources across heterogeneous …

What accounts for differences in output per capita and total factor productivity (TFP) across countries? Empirical … misallocation in a model where establishment-level productivity is endogenous and responds to the same policy distortions that … units (static effect), but also create disincentives for productivity improvement (dynamic effect) thereby affecting the …

This paper combines different strands of the productivity literature to investigate the effect of idiosyncratic (firm …-country differences in key economic outcomes, such as productivity or output per capita, to differences in policies and institutions that … determinants of productivity at the firm level and the evolution of the distribution of productivity across firms within each …

strategy to world shipbuilding, a classic target of industrial policy. I find strong evidence consistent with China having … subsidies led to substantial reallocation of ship production across the world, with Japan, in particular, losing significant …

major financial or economic crash. With a shrinking labor force and declining efficiency of investment, raising productivity …

: distorted employment decisions, increased productivity, and higher exit rates. Our empirical analysis, using a novel dataset and …% points higher annual productivity growth, and a 3.6% points higher probability of exit for firms with binding employment … after 10 years. Additionally, an alternative policy of productivity investment subsidies proved costly and less effective in …