aggregate productivity. TFP gaps are characterized as the integral of a strictly concave function with respect to an employment … productivity is shown to be ambiguous; conditions are given to determine its sign. An empirical lower bound on distortions based on …

We propose a theory linking imperfect information to resource misallocation and hence to aggregate productivity and … US, China, and India reveals substantial losses in productivity and output due to the informational friction. Our … estimates for these losses range from 7-10% for productivity and 10-14% for output in China and India, and are smaller, though …

Resource misallocation can lower aggregate total factor productivity (TFP). We use micro data on manufacturing …

differences in the efficiency of production, as measured by relative levels of total factor productivity, are the dominant factor … persist under prevailing rates of saving and productivity change. To check the robustness of these conclusions, we employ …

productivity in these shifts is also directly reflected in employment reallocations and changes in trade. Third, growth …

We estimate the rate of total factor productivity growth in Indian manufacturing industry for the period 1973-1992, and … it ignores the additional capital formation made possible by an increase in productivity and therefore understates … productivity's true importance. Our estimates suggest that the understatement may be quite large, and that one might better ask if …