We investigate the issue of implementation via individually rational ex-post budget-balanced Bayesian mechanisms. We demonstrate that all social choice rules that generate a nonnegative ex-ante surplus, including ex-post efficient ones, can generically be implemented via such mechanisms for any...

with theories of biased technological adoption but hard to rationalize in a neoclassical framework.

We study the behavior of firms as importers using a micro dataset of French manufacturing firms. We focus on firms' allocation of expenditure across different inputs and different supplying countries (varieties) of each input. We consider a general framework that nests the available models of...

Trade in intermediate inputs raises firm productivity as it enables producers to access both better and novel inputs of production. The question is: by how much? This paper develops a framework to answer this question. We explicitly allow for (i) firms sourcing from multiple countries, (ii)...

There are large and persistent productivity differences across firms within narrowly defined industries. This is especially true in poor countries. Why do productivity differences decline as the economy develops? In this paper I propose a theory where productivity differences exist because...

Income differences across countries are to a large degree driven by differences in aggregate TFP. Recently it has been argued that part of these differences are due to misallocation of factor across firms. In this paper we propose a structural model of this degree of misallocation. Our model is...

As recently shown by Hsieh and Klenow (2012), firm dynamics differ substantially across countries. While firms in the US experience substantial growth during their life-cycle, firms in developing countries, especially in India, barely expand. We present a tractable microfounded endogenous growth...

Why are resources misallocated across firms? I study an economy where misallocation stems from firms charging heterogeneous mark-ups. The distribution of mark-ups affects both aggregate TFP as well as equilibrium factor prices. While TFP is solely affected by the cross-sectional dispersion of...