Resource Misallocation and Energy-Related Pollution

Static and Dynamic Pollution and Resource Related Indices

Resource Misallocation and Aggregate Productivity under Progressive Taxation∗

This paper quantitatively examines the long-run macroeconomic effects of resource misallocation in an otherwise standard one-sector neoclassical growth model with heterogeneous establishments being subject to progressive taxation as well as endogenous entry decisions. Under a progressive fiscal policy rule, capital and labor inputs move from more productive to less productive establishments as ...

Misallocation and Growth

Endogenous growth model in which training is a by-product of production, and when both firms and workers are heterogeneous. Two-period OLG. The young must work with the old, and as a result an assignment problem arises. We can calculate the transition dynamics analytically when the skill of the young is log-normally distributed and the initial human capital of the old generation is also log-nor...

Misallocation and Establishment Dynamics

The gap between marginal revenues and marginal costs of inputs (i.e., distortions or wedges) at establishments potentially lower aggregate total factor productivity (TFP) by preventing efficient allocation of resources among incumbents, deterring entry and exit, and affecting technology choices. We investigate the impacts of distortions on aggregate TFP, entry and exit, and establishment-level ...

Information, Misallocation and Aggregate Productivity

We explore the implications of imperfect information about firm-level fundamentals for the misallocation of factors of production across heterogeneous firms and the consequences for aggregate productivity and output. In our setup, firms learn from both private sources and stock market prices, the latter determined in a noisy rational expectations model of asset markets. We devise a novel calibr...