China has achieved impressive growth over the last three decades. However, there has been debate over the sources of the growth, and the role of the intensive versus extensive margin. Growth accounting exercises at the aggregate level (Rawski and Perkins, 2008; Bosworth and Collins, 2008) suggest an...

In this paper, we discuss the role that data processing and collection have for the measurement of misallocation. First, we turn to the raw self-reported data for the US, reflecting what can be found in most developing countries. In the raw data, measured misallocation (following Hsieh and...