Bils, Mark; Klenow, Peter; Ruane, Cian - 2021
The ratio of revenue to inputs differs greatly across plants within countries such as the U.S. and India. Such gaps may … measurement error. Our method exploits how revenue growth is less sensitive to input growth when a plant’s average products are … overstated by measurement error. For Indian manufacturing from 1985-2013, our correction lowers potential gains from reallocation …