Is Misallocation Higher in France than in the United States?
AbstractIn this paper, we apply the Hsieh and Klenow (2009) methodology to French microdata on manufacturing firms to quantify the potential extent of intra-industry misallocation in France versus the United States. In contrast to what has been found for developing countries, such as China, India and some countries in Latin America, we do not find any sizeable ”efficiency gap” between France and the U.S. in the manufacturing industry. This new evidence is robust to a series of tests addressing both measurement and specification issues. In light of recent advances in the fields of productivity and misallocation, and in particular Bartelsman et al. (2013), we also discuss to what extent our new empirical findings challenge the established view on which continental European economies have higher input and output distortions than the American economy.
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Bibliographic InfoPaper provided by Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis in its series GREDEG Working Papers with number 2013-38.
Length: 28 pages
Date of creation: Oct 2013
Date of revision:
Misallocation; Productivity; Manufacturing; Firm-level data; France;
Find related papers by JEL classification:
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-25 (All new papers)
- NEP-BEC-2013-10-25 (Business Economics)
- NEP-EFF-2013-10-25 (Efficiency & Productivity)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Is France less distorted than we think?
by Economic Logician in Economic Logic on 2013-11-21 15:01:00
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