productivity shocks. However, the dispersion of firms’ productivity shocks has decreased too. To enhance our understanding of these …

minimum wage hike not only shrinks young and low-productivity firms but also lowers incentives to innovate, resulting in lower …

of misallocation. Compared to a counterfactual efficient allocation we find that misallocation has had a sizable negative … impact on aggregate productivity. Especially capital misallocation has increased over time. The relatively high and rising …

, I develop a heterogeneous-firms model that endogenizes declines in aggregate productivity through reallocation towards …-cycle of 2003-2012, the calibrated model generates about 50% of the observed productivity decline. …

productivity not only increases the likelihood of exporting, but also the chances of firm survival and continued export market …

Inefficient allocation of production across heterogeneous firms is a major source of welfare loss, but frameworks …-produce in the market allocation relative to the efficient allocation. We estimate our model across Chilean industries and find …

allocative efficiency because firms pass-through measured productivity gains into markups. From industry-year variation, there is …

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 …

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 …