We analyse the evolution of capital and labour (mis)allocation across firms in five euro-area countries (Belgium … emerge. First, in all countries with the exception of Germany, capital allocation has worsened over time whereas the … efficiency of labour reallocation has not changed significantly. Second, the observed increase in capital misallocation has been …

We analyse the evolution of capital and labour (mis)allocation across firms in five euro-area countries (Belgium … stand out. First, in all countries except Germany, capital allocation worsened over time whereas the efficiency of labour … reallocation did not change significantly. Second, the observed increase in capital misallocation has been particularly marked in …