We document how a plant-specific shock to investment opportunities at one plant of a firm ("treated plant") spills over … to other plants of the same firm--but only if the firm is financially constrained. While the shock triggers an increase … result of the resource reallocation, aggregate firm-wide productivity increases, suggesting that the reallocation is …

. We characterize a class of environments in which the tax on labor goes to zero in the long run, while the tax on capital …

total factor productivity (TFP) and static measures of capital misallocation within a country. Using data on 5 … between productivity volatility and the dispersion of the marginal revenue product of capital (static capital misallocation …-one percent of the static capital misallocation in the data is captured by the model's prediction. Our findings suggest that the …

We study capital misallocation within and across 10 African countries using the World Bank Enterprise Surveys. First … product of capital (MPK), implying that countries could produce significantly more with the same aggregate capital stock if … capital were allocated optimally. Such variation differs from country to country with some African countries (success stories …

of substitution between capital and labor less than one. This is inconsistent with the Uzawa Growth Theorem. We extend … Uzawa's theorem to show that the introduction of human capital accumulation in the standard way does not resolve the puzzle …. However, balanced growth is possible if schooling is endogenous and capital is more complementary with schooling than with raw …

Capital reallocation is procyclical, despite measured productive reallocative opportunities being acyclical, or even … countercyclical. This paper reviews the advances in the literature studying the causes and consequences of capital reallocation (or … lack thereof). We provide a comprehensive set of capital reallocation stylized facts for the US, and an illustrative model …

effects of target-setting on capital allocation, in a context in which such concerns have risen to particular prominence in …

by machines or software. Few have discussed the implications of the reverse: firms' ability to replace capital with … a simple real options model where permissive labor regulations allow firms to take advantage of capital …-labor substitutability by replacing ‘rigid' capital with ‘flexible' labor. The model highlights institutional, technological, and …

We use the World Bank Investment Climate Surveys data to analyze the employment of both labor and capital in Indian … manufacturing. We focus on disparities among states in manufacturing employment patterns, and provide reduced form evidence of their …