substantially shift towards Asia and especially towards the Asian Giants, China and India. While such forecasts may pan out, there … are substantial reasons that China and India may grow much less rapidly than is currently anticipated. Most importantly …

We propose a theory linking imperfect information to resource misallocation and hence to aggregate productivity and … US, China, and India reveals substantial losses in productivity and output due to the informational friction. Our … estimates for these losses range from 7-10% for productivity and 10-14% for output in China and India, and are smaller, though …