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Misallocation and Credit Market Constraints : The Role of Long-Term Financing

Karabarbounis, Marios - 2020

We measure aggregate productivity loss due to credit market constraints in a model with endogenous borrowing constraints, long-duration bonds, and costly equity payouts. Due to long-duration bonds, the model generates a realistic distribution of credit spreads. We structurally estimate our model...

Persistent link: https://www.econbiz.de/10012850336

Techniques Choice, Misallocation and Total Factor Productivity

Uras, Burak - 2014

We develop a generalized production framework with endogenous production techniques that serve to organize raw factor inputs in an efficient manner. We establish a positive relationship between production flexibility and cost efficiency. By allowing firms to differ in technology scales, capital...

Persistent link: https://www.econbiz.de/10013043157

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

International trade with heterogeneous firms : theory and evidence

Bonfiglioli, Alessandra; Crinò, Rosario; Gancia, Gino … - 2021

International trade is dominated by a small number of very large firms. Models of trade with heterogeneous firms have been developed to study the causes and consequences of this observation. The canonical model of trade with heterogeneous firms shows that trade leads to between-firm...

Persistent link: https://www.econbiz.de/10012669016

Risk-taking, capital allocation and optimal monetary policy

David, Joel M.; Zeke, David - 2021

We study the role of firm heterogeneity in affecting business cycle dynamics and optimal stabilization policy. Firms differ in their degree of cyclicality, and hence, exposure to aggregate risk, leading to firm-specific risk premia that influence resource allocations. The heterogeneous firm...

Persistent link: https://www.econbiz.de/10012415672

Allocation and industry productivity: Accounting for firm turnover

Maliranta, Mika; Määttänen, Niku - Elinkeinoelämän Tutkimuslaitos (ETLA) - 2013

Recent macroeconomic literature has stressed the importance of resource allocation between firms for aggregate productivity. An important issue, therefore, is how to measure allocative efficiency. We compare popular indicators of allocative efficiency, paying special attention to firm turnover....

Persistent link: https://www.econbiz.de/10010987367

Misallocation and Inequality

Guner, Nezih; Ruggieri, Alessandro - 2022

For a large set of countries, we document how the labor earnings inequality varies with GDP per capita. As countries get richer, the mean-to-median ratio and the Gini coefficient decline. Yet, this decline masks divergent patterns: while inequality at the top of the earnings distribution falls,...

Persistent link: https://www.econbiz.de/10014083775

Productivity Variation and Input Misallocation : Evidence from Hospitals

Chandra, Amitabh; Colla, Carrie Hoverman; Skinner, Jonathan - National Bureau of Economic Research - 2023

There are widespread differences in total factor productivity across producers in the U.S. and around the world. To 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...

Persistent link: https://www.econbiz.de/10014337801

Reallocation Dynamics in Production Networks With Heterogeneous Elasticities

Poirier, Côme; Vermandel, Gauthier - 2023

This paper investigates the role of heterogeneous elasticities of substitution in the US production network in the transmission of supply shocks. We develop and estimate a multi-industry general equilibrium model featuring heterogeneous elasticities of substitution in input demands. Using...

Persistent link: https://www.econbiz.de/10014348932

Capital reallocation and the cyclicality of aggregate productivity

Cooper, Russell W.; Schott, Immo - In: Quantitative economics : QE ; journal of the … 14 (2023) 4, pp. 1337-1365

Capital reallocation between firms is procyclical and leads to variations in measured aggregate productivity. In this … paper, we ask how much of the cyclical variation in measured productivity is the consequence of capital reallocation. We … costs of reallocation. These shocks cause an endogenous cyclicality of measured aggregate productivity. Only a model driven …

Persistent link: https://www.econbiz.de/10014496527