Petrin, Amil; Sivadasan, Jagadeesh - In: The Review of Economics and Statistics 95 (2013) 1, pp. 286-301
We propose a new measure of allocative efficiency based on unrealized increases in aggregate productivity growth. We show that the difference in the value of the marginal product of an input and its marginal cost at any plant—the plant-input gap—is exactly equal to the change in aggregate...