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Misallocation, Economic Growth, and Input-Output Economics

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  • Charles I. Jones

Abstract

One of the most important developments in the growth literature of the last decade is the enhanced appreciation of the role that the misallocation of resources plays in helping us understand income differences across countries. Misallocation at the micro level typically reduces total factor productivity at the macro level. Quantifying these effects is leading growth researchers in new directions, two examples being the extensive use of firm-level data and the exploration of input-output tables, and promises to yield new insights on why some countries are so much richer than others.

Suggested Citation

  • Charles I. Jones, 2011. "Misallocation, Economic Growth, and Input-Output Economics," NBER Working Papers 16742, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:16742 Note: EFG PR
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    References listed on IDEAS

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    1. Tariff Protection of British cotton 1774-1820s
      by pseudoerasmus in Pseudoerasmus on 2016-12-19 06:01:20

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    Cited by:

    1. Serguey Braguinsky & Lee G. Branstetter & Andre Regateiro, 2011. "The Incredible Shrinking Portuguese Firm," NBER Working Papers 17265, National Bureau of Economic Research, Inc.
    2. William Kerr & Ufuk Akcigit & Nicholas Bloom & Daron Acemoglu, 2012. "Innovation, Reallocation and Growth," 2012 Meeting Papers 1137, Society for Economic Dynamics.
    3. Vollrath, Dietrich, 2014. "The efficiency of human capital allocations in developing countries," Journal of Development Economics, Elsevier, vol. 108(C), pages 106-118.
    4. Kenan Huremovic & Fernando Vega-Redondo, 2016. "Production Networks," AMSE Working Papers 1633, Aix-Marseille School of Economics, Marseille, France.
    5. Luis Garicano & Claire Lelarge & John Van Reenen, 2016. "Firm Size Distortions and the Productivity Distribution: Evidence from France," American Economic Review, American Economic Association, vol. 106(11), pages 3439-3479, November.
    6. Christopher Udry, 2012. "Misallocation, Growth and Financial Market Imperfections," Annual Meeting Plenary 2012-3, Society for Economic Dynamics.

    More about this item

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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