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Growth of the Korean economy has been sluggish, and this situation is more pronounced in the service sector. We argue that capital misallocation, especially in the service sector, could contribute to this slowdown. Utilizing firm and sectoral level data, first we assess the rising dispersion of...
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at the micro level typically reduces total factor productivity at the macro level. Quantifying these effects is leading …
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their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends … equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high-productivity … firms relatively more than that of low-productivity ones, crowding out the latter and increasing TFP. We provide empirical …
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at the micro level typically reduces total factor productivity at the macro level. Quantifying these effects is leading …
Persistent link: https://www.econbiz.de/10012461916