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. …

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 …

This paper studies the implications of perceived default risk for aggregate output and productivity. Using a model of … 250 employees and (iii) that losses are overwhelmingly due to a lower overall capital stock rather than a misallocation of … credit across firms with heterogeneous productivity. Further, we find that these losses accounted for over half of the …

This paper studies the implications of perceived default risk for aggregate output and productivity. Using a model of … 250 employees and (iii) that losses are overwhelmingly due to a lower overall capital stock rather than a misallocation of … credit across firms with heterogeneous productivity. Further, we find that these losses accounted for over half of the …

This paper quantifies the impact of capital misallocation on the loss in total factor productivity (TFP), arising from … manufacturing sector in U.S., such productivity loss ranges from 3.7 to 9.5 percent. The TFP loss is stronger when credit is … of capital misallocation …

of collateral constraints and to quantify the aggregate impact of these constraints on misallocation and productivity …. The gains are primarily driven by capital deepening, whereas within-industry misallocation plays a smaller role. …

This paper investigates the effect of firing costs on total factor productivity (TFP) and resource allocation …

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 …

the resulting increase in factor misallocation accounts for 20% of the decline in productivity in Portugal in 2012. …We provide evidence that a weak banking sector has contributed to low productivity growth following the European … natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …