Misallocation of human capital across sectors can have substantial negative implications for aggregate output. So far …, the literature examining this type of labor misallocation has assumed a Cobb-Douglas production function. Our paper … substitutable than Cobb-Douglas assumes. Our counterfactual results indicate that human capital misallocation can explain …

We propose a new decomposition method for analysing aggregate productivity changes. The main improvement in our … proposed method is that we are clearly able to separate out pure productivity changes of a hypothetical average firm from … up firm-level contributions to aggregate productivity growth. It also allows for straightforward interpretation of the …

We propose a sectoral–shift theory of aggregate factor productivity for a class of economies with AK technologies … in Bulow–Rogoff (1989). Endogenous debt limits slow down capital reallocation, preventing the equalization of risk …–adjusted equity yields across sectors. Economy–wide factor productivity and the aggregate growth rate are both negatively correlated …

Recent research maintains that the observed variation in productivity within industries reflects resource misallocation … impact on productivity dispersion of reallocation frictions in the form of costs of entry, operation, and restructuring, and … shows that reforms reducing these frictions may raise dispersion of productivity across firms. The model does not imply a …

Factor misallocation has been emphasized as one of the main sources of differences in aggregate TFP. This paper … investigates the empirical dynamics of both capital and labor misallocation. Exploiting a balanced firm-level panel dataset … robustness checks, full distribution convergence in terms of capital misallocation does not occur at all and it proceeds at a low …

This paper shows that rising real estate prices reduce industry productivity, because they lead to a reallocation of … labor towards inefficient firms. This has significant negative consequences for aggregate industry productivity. I find that … industries with stronger growth in real estate value see a significant reduction in total factor productivity growth. A 10 …

Despite the remarkable growth rate in the past three decades, China has been also experiencing serious misallocation … factor cost, we construct a new framework of productivity decomposition, and for the first time derive a “pure” reallocation …, while misallocation still remains serious — welfare loss from misallocation accounts for about 30% of manufacturing value …