Reviewbronze2014

Firms, Misallocation, and Aggregate Productivity: A Review

284 citations0/0 files storedAnnual Review of Economics

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Economic Growth and Productivity Global trade and economics Firm Innovation and Growth

Abstract

Firm heterogeneity and the allocation of resources across firms play a key role in determining aggregate productivity. Entry barriers and misallocation can substantially impact productivity, as evidenced in recent work. This article provides a unifying theoretical framework and a review of this literature.

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References

2003The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity 1975MONOPOLISTIC COMPETITION AND OPTIMUM PRODUCT DIVERSITY 1982Selection and the Evolution of Industry 2009Misallocation and Manufacturing TFP in China and India *2000The Regulation of Entry 1978On the Size Distribution of Business Firms 1992Entry, Exit, and firm Dynamics in Long Run Equilibrium 2008Policy distortions and aggregate productivity with heterogeneous establishments

Cited by

2019The Sources of Capital Misallocation 2020Advanced Technologies Adoption and Use by U.S. Firms: Evidence from the Annual Business Survey 2020Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture 2017Misallocation, Establishment Size, and Productivity 2020Misallocation in the Market for Inputs: Enforcement and the Organization of Production*2020Lack of Selection and Limits to Delegation: Firm Dynamics in Developing Countries 2020Laggard firms, technology diffusion and its structural and policy determinants 2019Centralization and regional development: Evidence from a political hierarchy reform to create cities in china

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