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Productivity Misallocation.pdf

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Preview of Productivity Misallocation
🔗 Source: scholar.harvard.edu
📊 Size: 440 KB
📄 Pages: 102 pages
⬇️ Downloads: 223

Summary

We provide a general non-parametric formula for aggregating microeconomic shocks in general equilibrium economies with distortions, showing that the macroeconomic impact of a shock can be broken down into two components: its "pure" technology effect and its effect on allocative efficiency. Our results generalize those of Solow (1957) and Hulten (1978) to economies with distortions, and we demonstrate their empirical relevance by applying them to markup distortions, finding that improvements in allocative efficiency account for about 50% of measured TFP growth over 1997-2015.

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Description

We provide a general non-parametric formula for aggregating microeconomic shocks in general equilibrium economies with distortions, showing that the...

Technical Information

  • File Format: PDF
  • File Size: 440 KB
  • Pages: 102
  • Language: EN
  • Total Downloads: 223
  • Last Updated: 2 hours ago

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