The corporate finance literature traditionally abounds in both theoretical discussion and empirical research concerning financing and long-term investment decisions. Managing short-term resources appears to be a much less remarkable issue, despite this resource's significant share of a firm's...

We develop a new econometric framework that simultaneously allows recovering heterogeneity in demand, TFP and markups across firms while leaving the correlation among the three unrestricted. We do this by systematically exploiting assumptions that are implicit in previous firm-level productivity...