Good Dispersion, Bad Dispersion.

We document that most dispersion in marginal revenue products of inputs occurs across plants within firms rather than between firms. This is commonly thought to reflect misallocation: dispersion is "bad". However, we show that eliminating frictions hampering internal capital markets in a multi-plant...

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Bibliographic Details

Published in:	Review of Economic Studies Vol. 93; no. 2; pp. 1103 - 1137
Main Authors:	Kehrig, Matthias, Vincent, Nicolas
Format:	Article
Published:	Oxford University Press / USA Mar2026
Subjects:	U.S. Census Bureau Industrial productivity Emerging markets Heterogeneity Marginal productivity Capital market Capital allocation Market failure Multiproduct firms
Online Access:	View this record in EBSCOhost