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 …

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 … implies idiosyncratic distortions, in line with our accounting approach. According to our quantitative results, uncertainty …

-level uncertainty and imperfect information over their life cycle. We find that firms make non-negligible and positively correlated … informed. Moreover, young firms tend to wait long before entering or exiting the market faced with high uncertainty about their … thus resource allocation. Our quantitative exercise substantiates the importance of accumulation of experience for firms …

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 …

misallocation. Intuitively, an increase in granular uncertainty exacerbates the misallocation of credit as productive entrepreneurs … constraints. We model granular uncertainty as the shocks that affect the uncertainty in future idiosyncratic productivity without … financial frictions, the recovery from the state with large misallocation is slow. We propose an approximation method to solve …

Factor misallocation has been emphasized as one of the main sources of differences in aggregate TFP. This paper … investigates the empirical dynamics of both capital and labor misallocation. Exploiting a balanced firm-level panel dataset … robustness checks, full distribution convergence in terms of capital misallocation does not occur at all and it proceeds at a low …

. While credit subsidies resolve misallocation of resources and enhance aggregate productivity, increased factor prices, in …

This paper studies the implications of perceived default risk for aggregate output and productivity. Using a model of … allocation. The theoretical framework suggests an aggregate measure of the impact of credit market frictions based on firm …-level probabilities of default which can be applied using data on firm-level employment and default risk. We obtain direct estimates of …