Dynamic Inputs and Resource (Mis)Allocation.

We investigate the role of dynamic production inputs and their associated adjustment costs in shaping the dispersion of static measures of capital misallocation within industries (and countries). Across nine data sets spanning 40 countries, we find that industries exhibiting greater time-series vola...

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Detalles Bibliográficos
Publicado en:	Journal of Political Economy Vol. 122; no. 5; pp. 1013 - 1064
Autores principales:	Asker, John, Collard-Wexler, Allan, De Loecker, Jan
Formato:	Artículo
Publicado:	University of Chicago Press Oct2014
Materias:	Industrial productivity Economics Cross-cultural studies Capital productivity Mathematical models Resource allocation > Mathematical models Asset allocation Mathematical models in business Mathematical models of capital investments Allocative efficiency (Economics) Mathematical models of capital
Acceso en línea:	Ver este registro en EBSCOhost

Descripción
Sumario:	We investigate the role of dynamic production inputs and their associated adjustment costs in shaping the dispersion of static measures of capital misallocation within industries (and countries). Across nine data sets spanning 40 countries, we find that industries exhibiting greater time-series volatility of productivity have greater cross-sectional dispersion of the marginal revenue product of capital. We use a standard investment model with adjustment costs to show that variation in the volatility of productivity across these industries and economies can explain a large share (80-90 percent) of the cross-industry (and cross-country) variation in the dispersion of the marginal revenue product of capital.