Micro-Level Misallocation and Selection

2021 ◽  
Vol 13 (4) ◽  
pp. 341-368
Author(s):  
Mu-Jeung Yang
Keyword(s):  
Measurement Error ◽  
Extensive Margin ◽  
Relative Importance ◽  
Aggregate Productivity ◽  
Productivity Losses ◽  
Micro Level ◽  
Endogenous Selection ◽  
Plant Level

How large are the aggregate productivity losses from the misallocation of resources across firms? With endogenous selection, microfrictions can induce extensive margin misallocation among firms: too many unproductive firms are active (Zombies), and too many productive firms are inactive (Shadows). Therefore, the same set of measured distortions potentially induces much larger aggregate productivity losses, as the composition of firms is shifted toward unproductive active firms. I develop and calibrate a model with plant-level microdata for Indonesia to quantify aggregate welfare in the presence of extensive margin misallocation. My estimates show that selection can magnify aggregate TFP losses from microdistortions by over 40 percent compared to existing estimates. Realistic values of measurement error even increase the relative importance of extensive margin misallocation. (JEL D22, D24, E23, J24, J31, O14, O15)

scholarly journals THE FACTORS AFFECTING MILK YIELD IN DIARY FARMING IN GREATER GUWAHATI REGION OF ASSAM

2021 ◽  
Vol 9 (08) ◽  
pp. 723-728
Author(s):  
Heman Sarmah ◽  
◽  
Jnanashree Borah ◽  
Tirthankar Sarma ◽  
◽  
...  
Keyword(s):  
Regression Analysis ◽  
Dairy Cattle ◽  
Milk Production ◽  
Milk Yield ◽  
Policy Maker ◽  
Production Cost ◽  
Relative Importance ◽  
Factors Affecting ◽  
Micro Level ◽  
Farming Households

The production of milk is conceived of several factors and a very multifarious process. The knowledge of relative importance of the resource inputs influencing in milk production is essential for the dairy farmer for introducing desirable change in his operation at micro level and for the policy maker for formulating plans for improvements in dairy cattle productivity based on sound economic principles at the macro level (Rao, 1985).The income level of the dairy household is determined by the production of milk they produce at their farms. Generally, the income of the dairy household increases when the milk production cost decreases or when the milk production increases .For this it is essential to study the factors which directly or indirectly effect the milk production. Household samples have been selected both from the municipal wards of Guwahati Municipal Corporation area. Out of 672 dairy farming households, 201 household have been selected for the survey. Regression analysis has been used for the study of factors affecting milk production in greater Guwahati region of Assam.

Organizational Form and Trade Liberalization: Plant-Level Evidence

2021 ◽  
Author(s):  
John (Jianqiu) Bai
Keyword(s):  
Trade Liberalization ◽  
Core Competency ◽  
Extensive Margin ◽  
Trade Policies ◽  
Trade Shocks ◽  
Internal Organization ◽  
Level Data ◽  
Plant Level ◽  
The Impact ◽  
Aggregate Industry

This paper studies how firms’ internal organization shapes the impact of international trade. Using establishment-level data from the U.S. Census and a difference-in-difference specification, I find that, relative to standalone firms, conglomerates are more likely to restructure after trade liberalization episodes, focusing on their core competency and improving firm productivity and product market performance. Adjustments through the extensive margin account for the majority of the productivity growth differential between conglomerates and standalones experiencing trade shocks. Aggregate industry productivity remains relatively unchanged in industries dominated by conglomerates’ core business but decreases significantly in others. My findings suggest that firms’ internal organization has important consequences on the effects of trade policies. This paper was accepted by Gustavo Manso, finance.

scholarly journals Disentangling the relative importance of species occurrence, abundance and intraspecific variability in community assembly: a trait-based approach at the whole-plant level in Mediterranean forests

Oikos ◽  
2015 ◽  
Vol 125 (3) ◽  
pp. 354-363 ◽  
Author(s):  
Enrique G. de la Riva ◽  
Ignacio M. Pérez-Ramos ◽  
Ambra Tosto ◽  
Carmen M. Navarro-Fernández ◽  
Manuel Olmo ◽  
...  
Keyword(s):  
Community Assembly ◽  
Intraspecific Variability ◽  
Mediterranean Forests ◽  
Relative Importance ◽  
Species Occurrence ◽  
Whole Plant ◽  
Plant Level

Lumpy Investment, Business Cycles, and Stimulus Policy

2021 ◽  
Vol 111 (1) ◽  
pp. 364-396 ◽  
Author(s):  
Thomas Winberry
Keyword(s):  
Interest Rate ◽  
Business Cycles ◽  
Interest Rates ◽  
Real Interest Rate ◽  
Extensive Margin ◽  
Investment Behavior ◽  
The Real ◽  
Lumpy Investment ◽  
Aggregate Investment ◽  
Micro Level

I study the aggregate implications of micro-level lumpy investment in a model consistent with the empirical dynamics of the real interest rate. The elasticity of aggregate investment with respect to shocks is procyclical because more firms are likely to make an extensive margin investment in expansions than in recessions. Matching the dynamics of the real interest rate is key to generating this result because it disciplines the interest-elasticity of investment and avoids counterfactual behavior of the model that would otherwise eliminate most of the procyclical responsiveness. Therefore, data on interest rates place important discipline in aggregating micro-level investment behavior. (JEL D25, E13, E22, E23, E43, G31, H25)

scholarly journals Productivity Dynamics and Rural Industrialization in India

2019 ◽  
Vol 32 (1) ◽  
pp. 23-46
Author(s):  
Takahiro Sato ◽  
Aradhna Aggarwal
Keyword(s):  
Panel Data ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Rural Areas ◽  
Manufacturing Sector ◽  
Aggregate Productivity ◽  
Factor Productivity ◽  
Rural Industrialization ◽  
Plant Level ◽  
Productivity Dynamics

Since the late 1990s, industrialization in India has been driven by the rural organized manufacturing sector. This paper examines the effects of firms’ dynamics on rural industrialization in India, using plant-level panel data, to investigate the characteristics of rural industrialization in India in recent years. In particular, the paper focuses on productivity differences among continuing, entering, and exiting firms. The results show that both labour and total factor productivity of the organized manufacturing sector in rural areas increased during 2000–2006 and the aggregate productivity growth is supported by the productivity growth of the continuing firms, the entry of productive firms, and the exit of less-productive firms. The paper can conclude that firms’ productivity dynamics contributed to the current rural industrialization in India. JEL: O14, O47, O53

scholarly journals Proximity and Investment: Evidence from Plant-Level Data *

2013 ◽  
Vol 128 (2) ◽  
pp. 861-915 ◽  
Author(s):  
Xavier Giroud
Keyword(s):  
Travel Time ◽  
Total Factor Productivity ◽  
Extensive Margin ◽  
Sample Period ◽  
Factor Productivity ◽  
Firm Level ◽  
Level Data ◽  
Plant Level

Abstract Proximity to plants makes it easier for headquarters to monitor and acquire information about plants. In this article, I estimate the effects of headquarters’ proximity to plants on plant-level investment and productivity. Using the introduction of new airline routes as a source of exogenous variation in proximity, I find that new airline routes that reduce the travel time between headquarters and plants lead to an increase in plant-level investment of 8% to 9% and an increase in plants’ total factor productivity of 1.3% to 1.4%. The results are robust when I control for local and firm-level shocks that could potentially drive the introduction of new airline routes, when I consider only new airline routes that are the outcome of a merger between two airlines or the opening of a new hub, and when I consider only indirect flights where either the last leg of the flight (involving the plant’s home airport) or the first leg of the flight (involving headquarters’ home airport) remains unchanged. Moreover, the results are stronger in the earlier years of the sample period and for firms whose headquarters is more time-constrained. In addition, they also hold at the extensive margin, that is, when I consider plant openings and closures.

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