A few cities perform a high share of research and development (R&D) in the United States. If R&D generates local knowledge spillovers, then the social returns to R&D may vary across cities and the geographic distribution of researchers may be inefficient. Equally important, but less well...

Real effective exchange rate (REER) imbalances may affect economic growth by altering the allocation of labour and capital across sectors. This study assesses whether the component of inter-sectoral production factor misallocation induced by REER misalignments significantly hinders economic...

This paper details task reallocation between 1982 and 2018 among individuals in the NLSY79 cohort who entered the labor market at the cusp of the digital technological revolution. I estimate a set of granular task measures that captures multiple types of cognitive, interpersonal, physical, and...

Unemployment insurance and wage subsidies are key tools to support labor markets in recessions. We develop a multi-sector search and matching model with on-the-job human capital accumulation to study labor market policy responses to sector-specific shocks. Our calibration accounts for structural...

The conflict between the increased parking demand and limited curbside space calls for efficient on-street parking management. Among various parking demands, unsatisfied freight and service vehicles could cause high societal costs. Research has found that these two types of vehicles have major...

The Coase Theorem’s empirical credence and overall relevance to real-world settings continue to be questioned. Identification of a high-stakes, salient (to both Coasean claims) setting that features exogenously-assigned property rights has proven elusive according to the literature. While...

This paper studies the employment and reallocation effects of minimum wages in Germany in a search-and-matching model with endogenous job search effort and vacancy posting, multiple employment levels, a progressive tax-transfer system, and worker and firm heterogeneity. I find that minimum wages...

How does growing international financial diversification affect firm-level and aggregate labor shares? We study this question using a novel framework of firm labor choice in the face of aggregate risk. The theory implies a cross-section of labor risk premia and labor shares that appear as...

We study the productivity effect of the German national minimum wage by applying administrative firm data. At the firm level, we confirm positive effects on wages and negative employment effects and document higher productivity even net of output price increases. We find higher wages but no...

We study the productivity effect of the German national minimum wage by applying administrative firm data. At the firm level, we confirm positive effects on wages and negative employment effects and document higher productivity even net of output price increases. We find higher wages but no...

In this paper we provide firm-level evidence on the role of resource misallocation for total factor productivity development in Austria. We apply the indirect approach of measuring misallocation via the dispersion in marginal products within narrowly defined industries of Hsieh and Klenow (2009)...

Gradient capital allocation, also known as Euler allocation, is a technique used to redistribute diversified capital requirements among different segments of a portfolio. The method is commonly employed to identify dominant risks, assessing the risk-adjusted profitability of segments, and...

We study the random assignment of indivisible objects among a set of agents with strict preferences. Random Serial Dictatorship is known to be only ex-post efficient and there exist mechanisms which Pareto-dominate it ex ante. However, we show that there is no mechanism that is likewise (i)...

Welfare analyses conducted by policy practitioners around the world usually rely on equivalized or per-capita expenditures and ignore the extent of within-household inequality. Recent advances in the estimation of collective models suggest ways to retrieve the complete sharing process within...

This study aims to understand why some incumbent firms adapt to technological change while others do not. Previous research is mostly based on empirical studies of single technological changes, making generalization difficult. We considered technological change from four perspectives:...

Growth of the Korean economy has been sluggish, and this situation is more pronounced in the service sector. We argue that capital misallocation, especially in the service sector, could contribute to this slowdown. Utilizing firm and sectoral level data, first we assess the rising dispersion of...

How costly is the misallocation of production that we might expect to result from distortions such as market power, incomplete contracts, taxes, regulations, or corruption? This paper develops new tools for the study of misallocation that place minimal assumptions on firms' underlying...

Using Italian data that includes both inflation forecasts of firms and external information on their balance sheets, we study the causal effect of changes in the dispersion of beliefs about future inflation on the misallocation of resources. We find that as disagreement increases, so does...

This paper argues that regional variation in the efficiency of labor allocation among German manufacturing plants plays a critical role in explaining regional disparities in productivity. In fact, we show that over 50% of the East-West productivity gap is associated with a less efficient labor...

We examine the impact of the last five decades of financial globalization on world GDP and income distribution, using a novel multi-country dynamic general equilibrium model that incorporates a demand system for international assets. We introduce, estimate and validate new country-level measures...

In the current proposal, three objectives have defined which need to be considered while solving the resource allocation problem in ASD. This multi objective has then been solved using Goal Programming approach. The three approaches to solving a Goal Programming Problem i.e. the Weighted...

Some countries such as Canada, Italy, and Mexico have experienced a higher growth rate of capital per worker but a lower growth rate for GDP per worker when compared to the United States. This paper tries to reconcile this apparent contradiction in a dynamic open economy model. In the model,...