factor misallocation and development

The large differences in income per capita across countries are mostly explained by differences in total factor productivity (TFP). This article summarises the evidence on the importance of resource allocation across productive units in explaining the observed differences in TFP across countries.

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Authors:	Restuccia, Diego
Other Persons:	Durlauf, Steven N. (contributor) ; Blume, Lawrence E. (contributor)
Institutions:	Palgrave Macmillan
Subject:	distortions \| heterogeneous establishments \| misallocation \| productivity

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Extent:	text/html
Series:	The New Palgrave Dictionary of Economics.
Type of publication:	Article
Classification:	D4 - Market Structure and Pricing ; D10 - Household Behavior and Family Economics. General ; O1 - Economic Development
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010721064