Advanced Search
MyIDEAS: Login to save this paper or follow this series

Understanding Productivity During the Argentine Crisis


Author Info

  • Pablo Andrés Neumeyer
  • Guido Sandleris


This paper studies resource misallocation in the Argentine manufacturing (1997-2002) sector using the methodology of Hsieh and Klenow (2008). The study shows that the potential gains in terms of aggregate total factor productivity of equalizing marginal productivities of factor inputs across firms in narrowly defined industries is between 50% and 55% in relatively normal years, slightly above the 43% found by HK for the US. During the 2002 crisis the reallocation gains climbed to 60/80%. Using HK's concept of TFPR as a measure of wedges in marginal products across firms, we find that the dispersion of wedges across firms in 1997 is similar to the USA one and in 2002 it is 20% higher; and that TFPR is strongly correlated with firm level productivity (and size). Firm productivity and TFPR are positively correlated with size, age, exporting status and foreign ownership, indicating that more productive firms are likely to be larger, older, exporters, foreign owned and have relatively higher marginal products. These results should be taken with caution due to the measurement error introduced by the coarseness of the factor input data available.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by Universidad Torcuato Di Tella in its series Business School Working Papers with number 2010-04.

as in new window
Length: 53 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:udt:wpbsdt:2010-04

Contact details of provider:
Postal: Miñones 2177 - (1428) Buenos Aires
Web page:
More information through EDIRC

Related research


This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.


Blog mentions

As found by, the blog aggregator for Economics research:
  1. Sobre la Asignación Eficiente de los Factores Productivos
    by Sebastian Galiani in Foco Económico on 2012-02-19 12:00:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Gita Gopinath & Brent Neiman, 2011. "Trade adjustment and productivity in large crises," Working Papers 11-9, Federal Reserve Bank of Boston.
  2. Flora Bellone & Jérémy Mallen-Pisano, 2013. "Is Misallocation Higher in France than in the United States?," GREDEG Working Papers 2013-38, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:udt:wpbsdt:2010-04. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicolás Del Ponte).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.