Replication data for: Cross-Country Differences in Productivity: The Role of Allocation and Selection

Principal Investigator(s):  View help for Principal Investigator(s) Eric Bartelsman; John Haltiwanger; Stefano Scarpetta

Version:  View help for Version V1

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Project Citation: 

Bartelsman, Eric, Haltiwanger, John, and Scarpetta, Stefano. Replication data for: Cross-Country Differences in Productivity: The Role of Allocation and Selection. Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112592V1

Project Description

Summary:  View help for Summary This paper investigates the effect of idiosyncratic (firm-level) policy distortions on aggregate outcomes. Exploiting harmonized firm‑level data for a number of countries, we show that there is substantial and systematic cross‑country variation in the within-industry covariance between size and productivity. We develop a model in which heterogeneous firms face adjustment frictions (overhead labor and quasi-fixed capital) and distortions. The model can be readily calibrated so that variations in the distribution of distortions allow matching the observed cross-country moments. We show that the differences in the distortions that account for the size-productivity covariance imply substantial differences in aggregate performance. (JEL D24, L25, O47)

Scope of Project

JEL Classification:  View help for JEL Classification
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      L25 Firm Performance: Size, Diversification, and Scope
      O47 Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence


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V1 [2019-10-11]

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