Many papers have documented wide variations in productivity even in narrowly defined industries. Some have argued that … this primarily reflects measurement problems due to, for example, comparing across different products. Others argue this … reflects persistent differences in performance due, for example, to management. This paper looks at productivity differences …

aggregate productivity. TFP gaps are characterized as the integral of a strictly concave function with respect to an employment … productivity is shown to be ambiguous; conditions are given to determine its sign. An empirical lower bound on distortions based on … for distortions to explain large TFP gaps. The effect of curvature on the impact and measurement of distortions is also …

Many papers have documented wide variations in productivity even in narrowly defined industries. Some have argued that … this primarily reflects measurement problems due, for example, to comparing across different products. Others argue that … this reflects persistent differences in performance due, for example, to management. This paper looks at productivity …

reflect misallocation which hinders aggregate productivity. But differences in measured average products need not reflect … measurement error. Our method exploits how revenue growth is less sensitive to input growth when a plant’s average products are … overstated by measurement error. For Indian manufacturing from 1985-2013, our correction lowers potential gains from reallocation …

reflect misallocation which hinders aggregate productivity. But differences in measured average products need not reflect … measurement error. Our method exploits how revenue growth is less sensitive to input growth when a plant's average products are … overstated by measurement error. For Indian manufacturing from 1985-2013, our correction lowers potential gains from reallocation …