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aggregate productivity growth in the US manufacturing. Financial market frictions could distort the reallocation process and … hence may hinder aggregate productivity growth. This paper studies the quantitative impact of costly external finance on … aggregate productivity through resource reallocation across firms with idiosyncratic productivity shocks. A partial equilibrium …
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Growth of the Korean economy has been sluggish, and this situation is more pronounced in the service sector. We argue that capital misallocation, especially in the service sector, could contribute to this slowdown. Utilizing firm and sectoral level data, first we assess the rising dispersion of...
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