We analyse the impact of human capital misallocation and redistribution on GDP, welfare, and TFP, in economies with … model to the US economy and find that the misallocation, and its adverse effects on TFP and GDP, can be significant. However … redistributive policies, aimed at mitigating the misallocation from these missing markets, have only small positive effects on TFP …

We develop a theory linking "misallocation," i.e., dispersion in marginal products of capital (MPK), to macroeconomic … productivity by as much as 6%, suggesting large "productivity costs" of business cycles. …

misallocation in agriculture during the period between 2006 and 2016. Despite rapid growth in agricultural productivity and a … reallocation of factor inputs to more productive farmers, we find that misallocation across farmers remains high and increased … productivity over time. Our analysis also reveals important differences between the north and south regions. …

One of the key determinants of potential growth are productivity gains. Total factor productivity (TFP) differences are … the main determinant of per capita income differences between countries. A key factor to understand TFP is misallocation … their optimal use. If misallocation is a key determinant of TFP differences, then reallocation of factors of production is a …