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Markups and Misallocation with Trade and Heterogeneous Firms

Weinberger, Ariel - 2017

towards production. This paper quantifies a gains from trade component that is present only when reallocation is properly …

Persistent link: https://www.econbiz.de/10012970227

Uncertainty, misallocation and the life-cycle growth of firms

Mäkynen, Eero; Vähämaa, Oskari - 2021

We develop a measure of static misallocation that separates uncertainty from misallocation generated by tax-like distortions. In the Finnish firm-level data, uncertainty accounts for the majority of ex post misallocation and explains a strong decreasing age-dependent trend in it. To understand...

Persistent link: https://www.econbiz.de/10012583062

Capital Misallocation and Aggregate Factor Productivity

Azariadēs, Kōstas - 2012

in Bulow–Rogoff (1989). Endogenous debt limits slow down capital reallocation, preventing the equalization of risk …

Persistent link: https://www.econbiz.de/10013098934

Risk-adjusted capital allocation and misallocation

David, Joel M.; Schmid, Lukas; Zeke, David - 2020

We develop a theory linking "misallocation," i.e., dispersion in marginal products of capital (MPK), to macroeconomic risk. Dispersion in MPK depends on (i) heterogeneity in firm-level risk premia and (ii) the price of risk, and thus is countercyclical. We document strong empirical support for...

Persistent link: https://www.econbiz.de/10012395487

Declining dynamism, allocative efficiency, and the productivity slowdown

Decker, Ryan A.; Haltiwanger, John C.; Jarmin, Ronald S.; … - 2017

reallocation. A distinct literature describes a slowdown in the pace of aggregate labor productivity growth. We relate these …

Persistent link: https://www.econbiz.de/10011708266

Weird ties? Growth, cycles and firm dynamics in an agent-based model with financial-market imperfections

Napoletano, Mauro; Delli Gatti, Domenico; Fagiolo, Giorgio - 2005

This paper studies how the interplay between technological shocks and financial variables shapes the properties of macroeconomic dynamics. Most of the existing literature has based the analysis of aggregate macroeconomic regularities on the representative agent hypothesis (RAH). However, recent...

Persistent link: https://www.econbiz.de/10010328512

Models of Sectoral Reallocation

Swanson, Eric T. - 1999

This paper demonstrates several strengths and shortcomings of models of sectoral reallocation. Although such models … demonstrate that sectoral reallocation can be an important amplification and propagation mechanism for exogenous shocks, they are … essentially unable to explain any effects of sectoral reallocation on aggregate productivity or related quantities (such as the …

Persistent link: https://www.econbiz.de/10014198038

The Importance of Reallocations in Cyclical Productivity and Returns to Scale : Evidence from Plant-Level Data

Lee, Yoonsoo - 2007

This paper provides new evidence that estimates based on aggregate data will understate the true procyclicality of total factor productivity. I examine plant-level data and show that some industries experience countercyclical reallocations of output shares among firms at different points in the...

Persistent link: https://www.econbiz.de/10012729053

Human capital misallocation and output per worker differences : beyond Cobb-Douglas

Trenczek, Jan; Wacker, Konstantin - 2023 - This version: September 28, 2023

Misallocation of human capital across sectors can have substantial negative implications for aggregate output. So far, the literature examining this type of labor misallocation has assumed a Cobb-Douglas production function. Our paper departs from this assumption and instead considers more...

Persistent link: https://www.econbiz.de/10014429346

Does Higher Productivity Dispersion Imply Greater Misallocation? A Theoretical and Empirical Analysis

Brown, J. David - 2016

impact on productivity dispersion of reallocation frictions in the form of costs of entry, operation, and restructuring, and …

Persistent link: https://www.econbiz.de/10012981979