Name File Type Size Last Modified
  20091235_Data 10/11/2019 06:14:PM
  20091235_additionalmaterials 10/11/2019 06:14:PM

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


Related Publications

Published Versions

Export Metadata

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.