Eslava, Marcela; Haltiwanger, John; Kugler, Adriana D.; … - 2005
In this paper, we analyze employment and capital adjustments using a panel of plants from Colombia. We allow for …-level productivity, demand shocks, and cost shocks, and use them to measure desired factor levels. We then estimate adjustment functions … frictions from factor adjustments would yield a dramatic increase in aggregate productivity through improved allocative …