Replication data for: Cross-Country Differences in Productivity: The Role of Allocation and Selection
Principal Investigator(s): View help for Principal Investigator(s) Eric Bartelsman; John Haltiwanger; Stefano Scarpetta
Version: View help for Version V1
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Project Citation:
Bartelsman, Eric, Haltiwanger, John, and Scarpetta, Stefano. Replication data for: Cross-Country Differences in Productivity: The Role of Allocation and Selection. Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112592V1
Project Description
Summary:
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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:
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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
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
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