We develop a theory linking "misallocation," i.e., dispersion in marginal products of capital (MPK), to macroeconomic … productivity by as much as 6%, suggesting large "productivity costs" of business cycles. …

I develop a method to measure and separate the production misallocation caused by failures in factor markets versus … financial markets. When I apply the method to rice farming villages in Thailand I find surprisingly little misallocation …. Optimal reallocation would increase output in most villages by less than 15 percent. By 2006 most misallocation comes from …

financial crisis. This paper analyzes the effects of resource misallocation on total factor productivity (TFP) of the …The Chilean economy experienced a decade of sustained growth in aggregate out-put and productivity after the 1982 … census. We find that a reduction in resource misallocation accounts for about 46 percent of the growth in manufacturing TFP …

total factor productivity (TFP) is endogenous and depends on the resource allocation. The model uncovers a novel tradeoff …

aggregate output and productivity and highlight indirect general equilibrium effects. To do so, we build a model of … cleansing effect reinforces the direct effect by enhancing the aggregate productivity. However, the number of firms in operation … decreases in equilibrium, and this, in turn, depresses the aggregate productivity. …

. While credit subsidies resolve misallocation of resources and enhance aggregate productivity, increased factor prices, in …-level productivity, which allows us to capture the skewed firm size distribution seen in the Business Dynamics Statistics (BDS). We … compare the welfare and aggregate productivity implications of our non-Gaussian process to those of a standard AR(1) process …

leads to high market concentration and markups, falling labor share and decelerating productivity only when knowledge … diffusion decreases both in technology imitation among innovators and in technology adoption by entrepreneurs. Patents are an …

inventions arising out of federally-funded research and to license those patents exclusively or nonexclusively at their …

number of research scholars) are transformed into research outputs in the form of publications and patents. We expect …