Replication data for: Misallocation and the Distribution of Global Volatility

Principal Investigator(s):  View help for Principal Investigator(s) Maya Eden

Version:  View help for Version V1

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  20150314_data 10/20/2021 08:54:AM
LICENSE.txt text/plain 14.6 KB 10/11/2019 11:47:PM

Project Citation: 

Eden, Maya. Replication data for: Misallocation and the Distribution of Global Volatility. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113045V1

Project Description

Summary:  View help for Summary Decreasing returns at the macro level are an outcome of efficiency at the micro level. When inputs are scarce, an efficient economy carries out only the most productive projects; when inputs are abundant, the economy implements less productive projects as well. This link between decreasing returns and efficiency suggests that misallocation can reduce the extent of aggregate decreasing returns. I formalize this connection and establish two main results: (i) misallocation amplifies the volatility of output with respect to fluctuations in inputs; and (ii) financial integration amplifies shocks in relatively distorted economies, but mitigates them in less distorted economies.

Scope of Project

JEL Classification:  View help for JEL Classification
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      D82 Asymmetric and Private Information; Mechanism Design
      E23 Macroeconomics: Production
      E32 Business Fluctuations; Cycles
      E44 Financial Markets and the Macroeconomy
      F41 Open Economy Macroeconomics
Data Type(s):  View help for Data Type(s) aggregate data


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V1 [2019-10-12]

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