Data and Code for: How to Use Natural Experiments to Estimate Misallocation

Principal Investigator(s):  View help for Principal Investigator(s) David Sraer, UC Berkeley; David Thesmar, MIT

Version:  View help for Version V1

Name File Type Size Last Modified
  replication_package 03/28/2023 11:58:AM

Project Citation: 

Sraer, David , and Thesmar, David . Data and Code for: How to Use Natural Experiments to Estimate Misallocation. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-03-30. https://doi.org/10.3886/E183448V1

Project Description

Summary:  View help for Summary We propose a method to estimate the effect of firm policies (e.g., bankruptcy laws) on allocative efficiency using (quasi-) experimental evidence. Our approach takes general equilibrium effects into account and requires neither a structural estimation nor a precise assumption on how the experiment affects firms. Our aggregation formula relies on treatment effects of the policy on the distribution of output-to-capital ratios, which are easily estimated. We show this method is valid for a large class of commonly-used models in macro-finance. We apply it to the French banking deregulation episode of the mid-1980s and find an increase in aggregate TFP of 5%.

Scope of Project

Subject Terms:  View help for Subject Terms administrative firm-level data
JEL Classification:  View help for JEL Classification
      E22 Investment; Capital; Intangible Capital; Capacity
      E23 Macroeconomics: Production
      G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
Geographic Coverage:  View help for Geographic Coverage France
Time Period(s):  View help for Time Period(s) 1/1/1975 – 12/31/1999
Universe:  View help for Universe Private firms in France 
Data Type(s):  View help for Data Type(s) program source code


Related Publications

Download this project

Published Versions

V1 [2023-03-30]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.