Replication data for: The Sources of Capital Misallocation

Principal Investigator(s):  View help for Principal Investigator(s) Joel M. David; Venky Venkateswaran

Version:  View help for Version V1

Name File Type Size Last Modified
AdjCosts.m text/plain 227 bytes 12/07/2019 03:26:AM
Figure1.m text/plain 3.8 KB 12/07/2019 03:26:AM
Figure2_IsoCorr.m text/plain 5.7 KB 12/07/2019 03:26:AM
Identif_Func_Dist_KF.m text/plain 4.7 KB 12/07/2019 03:26:AM
MomentsInput.xlsx application/vnd.openxmlformats-officedocument.spreadsheetml.sheet 10.7 KB 12/07/2019 03:26:AM
Moments_KF.m text/plain 4.3 KB 12/07/2019 03:26:AM
README.pdf application/pdf 112.5 KB 12/07/2019 03:26:AM
Table2_CHN.do text/plain 2.2 KB 12/07/2019 03:26:AM
Table2_US.do text/plain 2.2 KB 12/07/2019 03:26:AM
Table3_BaselineSMM.m text/plain 2.5 KB 12/07/2019 03:26:AM

Project Description

Summary:  View help for Summary We develop a methodology to disentangle sources of capital "misallocation," i.e., dispersion in value-added/capital. It measures the contributions of technological/informational frictions and a rich class of firm-specific factors. An application to Chinese manufacturing firms reveals that adjustment costs and uncertainty, while significant, explain only a modest fraction of the dispersion, which stems largely from other factors: a component correlated with productivity and a fixed effect. Adjustment costs are more salient for large US firms, though other factors still account for the bulk of the dispersion. Technological/markup heterogeneity explains a limited fraction in China, but a potentially large share in the United States.

Scope of Project

JEL Classification:  View help for JEL Classification
      D22 Firm Behavior: Empirical Analysis
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
      E22 Investment; Capital; Intangible Capital; Capacity
      G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
      L60 Industry Studies: Manufacturing: General
      O11 Macroeconomic Analyses of Economic Development


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Published Versions

V1 [2019-12-07]

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