Uras, Burak R.; Wang, P. - Tilburg University, Center for Economic Research - 2014
allowing firms to differ in technology scales,capital constraints and technique limitations, we illustrate an amplification of … theoretically and quantitatively, the consequences of capital and technique misallocation across firms for theTFP and the interplay …, due to the ampli…fication effect of production flexibility, technique misallocation generates more TFP losses than capital …