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Misallocation of resources across Firms in Spain (1992-2013)

Author

Listed:
  • Patricia Jiménez Martínez

    (Comisión Nacional de los Mercados y la Competencia)

  • Juan A. Máñez Castillejo

    (Universitat de València and ERICES)

  • María E. Rochina Barrachina

    (Universitat de València and ERICES)

  • Juan A. Sanchis Llopis

    (Universitat de València and ERICES)

Abstract

This paper assesses the e ciency in resource allocation across rms within industries in Spain since early 90's until 2013. A static and a dynamic decomposition of total factor productivity are performed in order to study the degree of misallocation in each manufacturing sector and its evolution over time. We nd that within industries allocative e ciency increased moderately and productivity grew slightly (almost stagnated) from 1992 to 2007. The great crisis was characterized by a sharp drop in productivity and a general rise in within industry misallocation of resources (but it seems that only capital misallocation worsened, while employment misallocation diminished). From 2011 to 2013, productivity and allocative e ciency started to recover, but the productivity levels previous to the crisis were still not achieved at the end of the period.

Suggested Citation

  • Patricia Jiménez Martínez & Juan A. Máñez Castillejo & María E. Rochina Barrachina & Juan A. Sanchis Llopis, 2019. "Misallocation of resources across Firms in Spain (1992-2013)," Working Papers 1919, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:1919
    as

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    References listed on IDEAS

    as
    1. Gita Gopinath & Şebnem Kalemli-Özcan & Loukas Karabarbounis & Carolina Villegas-Sanchez, 2017. "Capital Allocation and Productivity in South Europe," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1915-1967.
    2. repec:ptu:bdpart:b201409 is not listed on IDEAS
    3. Manuel García‐Santana & Enrique Moral‐Benito & Josep Pijoan‐Mas & Roberto Ramos, 2020. "Growing Like Spain: 1995–2007," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(1), pages 383-416, February.
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    7. Ana Martín-Marcos & Jordi Jaumandreu, 2004. "Entry, exit and productivity growth: Spanish manufacturing during the eighties," Spanish Economic Review, Springer;Spanish Economic Association, vol. 6(3), pages 211-226, October.
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