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Misallocation and Productivity

  • Diego Restuccia
  • Richard Rogerson

A large portion of differences in output per capita across countries is explained by differences in total factor productivity (TFP). In this article, we summarize a recent literature - and the articles in this special issue on misallocation and productivity - that focus on the reallocation of factors across heterogeneous production units as an important source of measured TFP differences across countries.

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Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-468.

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Date of creation: 23 Nov 2012
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Handle: RePEc:tor:tecipa:tecipa-468
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