What accounts for differences in output per capita and total factor productivity (TFP) across countries? Empirical … in a general equilibrium model of establishment productivity where the distribution of productivity is characterized in … productivity improvement thereby altering the productivity distribution and equilibrium prices (dynamic effect), further lowering …

to US data. In the context of this model we argue that differences in the allocation of resources across heterogeneous …

through its effect on productivity: the entry and exit of firms and the reallocation of resources from less to more efficient … firms explain a relevant part of transitional productivity dynamics. In this paper we use a stochastic general equilibrium …

-cyclical and leads to variations in measured aggregate productivity. Using a simulated method of moments approach, different … reallocation with aggregate productivity …

-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job at … business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks …

misallocation model. Entry productivity investment and factor misallocation contribute equally to the reduction in output, whereas …We consider a tractable model of heterogeneous production units that features endogenous entry and productivity … investment to assess the quantitative impact of policy distortions on aggregate output and establishment size. Relative to the …

at the micro level typically reduces total factor productivity at the macro level. Quantifying these effects is leading …

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 …

We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A …