The literature on aid effectiveness has focused more on recipient policies than the determinants of aid allocation yet … are employed to control for endogeneity. The paper suggests that aid allocation should be scrutinized carefully to make …

to public and private credit for the determination of misallocation. We first derive measures of factor market and size …-to-finance obstacles as well as the effect of access to a credit line issued by either a government-owned or private bank. We find that … access-to-finance obstacles and private credit increase the dispersion of distortions. Public credit has a very small effect …

Empirical evidence suggests that widespread financial distress, by disrupting enforcement of credit contracts, can be … self-propagatory and adversely affect the supply of credit. We propose a unifying theory that models the interplay between … enforcement, borrower default decisions, and the provision of credit. The central tenets of our framework are the presence of …

capital, the influence of firm ownership and political connections, informality, the allocation of talent across the economy …

efficient allocation of production factors across firms. In this study, we measure the effect of bureaucracy, labor regulations …

analyse the link between sectoral resource allocation, low productivity growth and stagnant real wages. My results suggest … equilibrium is not efficient as firms fail to internalize the effect of their individual labor allocation on aggregate growth …