We develop a methodology to disentangle sources of capital “mis-allocation,” ie, dispersion
in value-added/capital. It measures the contributions of technological/informational frictions …

Is there a role for governments in emerging countries to accelerate economic development
by intervening in product and factor markets? To address this question, we study optimal …

Investment in knowledge-based capital (KBC)–assets that lack physical embodiment, such
as computerised information, innovative property and economic competencies–has been …

We build a model with heterogeneous firms and banks to analyze how policy affects credit
allocation and long-term economic outcomes. When firms are hit by small negative shocks …

Why doesn't capital flow into fast-growing countries? Using a model with heterogeneous
producers and underdeveloped domestic financial markets, we explain the joint dynamics of …

We study the consequences of interest rate liberalization in a two-sector general equilibrium
model of China. The model captures a key feature of China's distorted financial system: state …

A new dataset for the average employment size of establishments across sectors and
countries is constructed from hundreds of sources. Establishments are larger in …

The Chilean economy experienced a decade of sustained growth in aggregate output and
productivity after the 1982 financial crisis. This paper analyzes the role of allocative …

This letter assesses the impact of a variation in access to a targeted loan program from
Brazil's development bank on investment and productivity. Results suggest that eligible firms …

Using a rich dataset of Chinese firms, we investigate the effect of industrial policies on
resource misallocation. Our difference-in-difference model estimates provide evidence that …