-creditor reform affected the allocation of resources across firms. We find evidence that the reform was particularly effective in … thrive on the expense of others. Our results suggest that better access to credit can improve the allocation of resources …

help explain these variations, we devise a general test for misallocation in input choices - the underuse of effective … inputs and overuse of ineffective ones. Misallocation implies that conditional on total input use, the return to using a … misallocation across hospitals, where inputs and outputs are better measured than in other industries. Applying our test to a sample …