This chapter takes stock of what has been learned from the recent micro-development literature about wedges - mechanisms generating dispersion in marginal revenue products of factors across firms, which are commonly interpreted as indicators of misallocation. We present a general theoretical...

We replicate Horváth (2025), experimentally studying link formation and effort in a linear-quadratic game with positive externalities. Across five treatments, subjects exert 38-97 percent more effort than the Nash benchmark yet create too few links, depressing payoffs. In groups of five, the...

We study how variation in the allocation mechanism of public demand shapes firm performance and aggregate productivity. Exploiting the quasi-random implementation of an efficient or lottery-like auction format in the Italian construction sector, we find that when the same amount of public...

This paper investigates the extent to which the historical legacy of apartheid laws explains contemporary misallocation and firm productivity in South Africa. During the apartheid era (1948-1994), job reservations, closed-shop agreements, and minimum-wage policies were implemented to restrict...

We study conflicts between envy-based fairness and efficiency for allocating indivisible items under additive utilities. We formalize several small, transparent instances showing that standard envy-freeness (EF) or its relaxations EFX and EFX0-i.e., envy-freeness up to any item, where EFX...

Thailand's 2024 excise tax reform aimed to stimulate the tourism economy through the elimination of import tariffs and the reduction in excise rates on wine. This study evaluates the causal economic and distributional impacts of this policy intervention. The analysis employs a quasi-experimental...