Rossi-Hansberg, Esteban; Caliendo, Lorenzo - National Bureau of Economic Research (NBER) - 2011
A firm's productivity depends on how production is organized given the level of demand for its product. To capture this … theory, heterogeneity in demand leads to heterogeneity in productivity and other firms' outcomes. We use the theory to … and will decentralize decisions. The new organization of the average exporter results in higher productivity, although the …