We develop a theory linking "misallocation," i.e., dispersion in marginal products of capital (MPK), to macroeconomic … risk. Dispersion in MPK depends on (i) heterogeneity in firm-level risk premia and (ii) the price of risk, and thus is … countercyclical. We document strong empirical support for these predictions. Stock market-based measures of risk premia imply that …

Measures of institutional quality are strong predictors of cross-country differences in income and productivity. The … efficient allocation of production factors across firms. In this study, we measure the effect of bureaucracy, labor regulations …, family management and financial frictions on input misallocation across firms using a unique dataset that combines firm …

their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends … on the time-varying distribution of firms. Although a reduction in real rates increases misallocation in partial … equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high-productivity …

their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends … on the time-varying distribution of firms. Although a reduction in real rates increases misallocation in partial … equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high-productivity …

their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends … on the time-varying distribution of firms. Although a reduction in real rates increases misallocation in partial … equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high-productivity …

This paper analyzes the link between monetary policy and capital misallocation in a New Keynesian model with … strongly in response to a monetary policy expansion, thus reducing misallocation. This feature creates a new time …-inconsistent incentive for the central bank to engineer an unexpected monetary expansion to temporarily reduce misallocation. However, price …

Misallocation of human capital across sectors can have substantial negative implications for aggregate output. So far …, the literature examining this type of labor misallocation has assumed a Cobb-Douglas production function. Our paper … substitutable than Cobb-Douglas assumes. Our counterfactual results indicate that human capital misallocation can explain …

in the effect and size of productivity shocks explain most of the gap in misallocation between manufacturing and services …Recent empirical studies document that the level of resource misallocation in the service sector is significantly … estimates for Portugal (2008) show that closing this gap, by reducing misallocation in the service sector to manufacturing …

Following Hsieh and Klenow (2009) this paper studies productivity dispersion in Colombian industrial establishments …-level distortions would increase manufacturing productivity in Colombia and compare it with the United States. We find that such a … reallocation would increase manufacturing Total Factor Productivity (TFP) in Colombia around 15% more than in the United States in …