How costly is the misallocation of production that we might expect to result from distortions such as market power …, incomplete contracts, taxes, regulations, or corruption? This paper develops new tools for the study of misallocation that place … misallocation and to quantify the welfare losses that it causes. We then consider an application in which thousands of firms …

makes it difficult to establish the relationship between the two. This study focuses on the misallocation of production … new evidence on the effect of employment protection on resource misallocation using a large data set of manufacturing … plants covering more than 90 countries. For measuring misallocation, I use the within-industry dispersion of the marginal …