This paper characterizes the short- and long-run Cournot equilibrium with heterogeneous firms and stochastic technological change. In our model, firms have different technologies with heterogeneous fixed and variable costs and various degrees of markups. In a framework with homogeneous firms,...

This paper examines the resource mismatch in China's healthcare sector from 2010 to 2019. We use structural efficiency to measure the resource mismatch in the healthcare industry (0.2-0.7). We find that an increase in the proportion of private hospitals decreases the healthcare resource mismatch...

We argue that capital misallocation arises endogenously due to incomplete consumption insurance. We model risk-averse entrepreneurs with heterogeneous productivity who face idiosyncratic output shocks and choose how much capital to rent before uncertainty unfolds. We show that incomplete markets...

This paper provides evidence on the nature of financial constraints faced by women entrepreneurs, especially in contexts of stringent social norms. Using micro-data from the World Bank Enterprise Surveys for 61 countries, the analysis shows that formal firms managed by women do not face credit...

Background: Each disaster has its specific resource requirements, varying based on its size, location, and the affected region's socio-economic level. Pre-disaster planning and post-disaster dynamic resource allocation including material and human resources is essential. Methods: To address the...

Children tend to choose the same occupations as their parents. We examine the implications of this tendency for talent allocation and intergenerational mobility. Using Swedish data on skills and personality traits, we estimate a general equilibrium Roy model with unequal occupational access...

Fog computing introduces a new dimension to the network edge by pooling diverse resources (e.g., processing power, memory, and bandwidth). However, allocating resources from heterogeneous fog nodes often faces limited capacity. To overcome these limitations, integrating fog nodes with cloud...

We study a large market model of dynamic matching with no monetary transfers and a continuum of agents who have to be assigned items at each date. When the social planner can only elicit ordinal agents' preferences, we prove that under a mild regularity assumption, incentive compatible and...

We examine the effects of international trade in the presence of a set of domestic distortions giving rise to informality, a prevalent phenomenon in developing countries. In our quantitative model, the informal sector arises from burdensome taxes and regulations that are imperfectly enforced by...

This paper documents a new consequence of market integration: local reallocation, i.e., the exit of some workers from production even though employment increases in the same area and industry. Thanks to new data on over 150,000 personal bankruptcies combined with detailed microcensus data from...

Against the backdrop of production and sales globalization, a country can utilize its trade network position to secure greater benefits from international trade and gradually enhance its economic and trade influence. This process is inseparable from the rational allocation of production factors....

As environmental concerns receive increasing attention, investments in environmental resources have grown, leading to numerous green technology innovations (GTI). Yet, amid limited resources, exploring green technology innovation efficiency (GTIE) becomes a more meaningful topic. Efficient...

Firm performance depends critically on the efficient allocation of tasks across employees. Yet, task assignment decisions are often shaped not only by productivity considerations but also by managerial biases and gender stereotypes-frequently resulting in women being disproportionately assigned...

This paper uses a general equilibrium framework to examine the effects of temperature on firm-level demand, productivity, and input allocation efficiency, deriving an aggregate damage function for climate change. Using data from Italian firms and detailed climate data, it uncovers a sizable...

We show that in a canonical model with heterogeneous entrepreneurs, financial frictions, and an imperfectly elastic supply of capital, a fall in the interest rate has an ambiguous effect on aggregate economic activity. In partial equilibrium, a lower interest rate raises aggregate investment...

This paper documents a new consequence of market integration: local reallocation, i.e., the exit of some workers from production even though employment increases in the same area and industry. Thanks to new data on over 150,000 personal bankruptcies combined with detailed microcensus data from...