蝌蚪网 Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Resource Misallocation in European Firms: The Role of Constraints, Firm Characteristics, and Managerial Decisions
蝌蚪网 Journal: Macroeconomics
(pp. 413–54)
Abstract
Using a new survey, we document high dispersion of marginal revenue products across firms in the European Union. To interpret this dispersion, we develop a highly portable framework to quantify gains from better allocation of resources. We demonstrate that apart from direct measures of distortions, firm characteristics, such as demographics, quality of inputs, utilization of resources, and dynamic adjustment of inputs, are predictors of the marginal revenue products of capital and labor. We emphasize that some firm characteristics may reflect compensating differentials rather than constraints and the effect of constraints on the dispersion of marginal products maybe smaller.Citation
Gorodnichenko, Yuriy, Debora Revoltella, Jan Svejnar, and Christoph T. Weiss. 2026. "Resource Misallocation in European Firms: The Role of Constraints, Firm Characteristics, and Managerial Decisions." 蝌蚪网 Journal: Macroeconomics 18 (3): 413–54. DOI: 10.1257/mac.20210220Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
- E23 Macroeconomics: Production
- G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
- L25 Firm Performance: Size, Diversification, and Scope