We develop a measure of static misallocation that separates uncertainty from misallocation generated by tax …-like distortions. In the Finnish firm-level data, uncertainty accounts for the majority of ex post misallocation and explains a strong … firms have to learn their productivity. We match our model with the salient features of the data and show that our model …

An establishment can improve its productivity by hiring workers from more productive establishments. Then, how … important is worker reallocation for aggregate productivity growth? To study this question, I develop a general equilibrium … knowledge diffusion mechanism increases the aggregate productivity growth by 0.14 percentage points and enhances welfare …

This paper studies the productivity impact of heterogeneous capital inputs of selected EU-15 member countries and of …

In a recent paper, Bloom et al. (2020) find evidence for a substantial decline in research productivity in the U …

This paper studies the implications of perceived default risk for aggregate output and productivity. Using a model of … allocation. The theoretical framework suggests an aggregate measure of the impact of credit market frictions based on firm …-level probabilities of default which can be applied using data on firm-level employment and default risk. We obtain direct estimates of …

find that relatively efficient (high total factor productivity (TFP)) firms exited while relatively inefficient (low TFP …

values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility …

the misallocation of production function has contributed to the weakness in productivity. Factors behind this … misallocation of production factors on productivity and assess their role for the weakness in productivity growth in Germany … productivity growth is damped due to the misallocation of production factors is increasing. …

Recent macroeconomic literature has stressed the importance of resource allocation between firms for aggregate … productivity. An important issue, therefore, is how to measure allocative efficiency. We compare popular indicators of allocative … productivity and to the Olley-Pakes (OP) covariance component, which is currently the most popular measure of allocative efficiency …