NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Plant-Size Distribution and Cross-Country Income Differences

Laura Alfaro, Andrew Charlton, Fabio Kanczuk

NBER Working Paper No. 14060
Issued in June 2008
NBER Program(s):   EFG   LS

We investigate, using plant-level data for 79 developed and developing countries, whether differences in the allocation of resources across heterogeneous plants are a significant determinant of cross-country differences in income per worker. For this purpose, we use a standard version of the neoclassical growth model augmented to incorporate monopolistic competition among heterogeneous plants. For our preferred calibration, the model explains 58% of the log variance of income per worker. This figure should be compared to the 42% success rate of the usual model.

download in pdf format
   (335 K)

email paper

This paper is available as PDF (335 K) or via email.

This paper was revised on December 5, 2011

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w14060

Published: Plant-Size Distribution and Cross-Country Income Differences, Laura Alfaro, Andrew Charlton, Fabio Kanczuk. in NBER International Seminar on Macroeconomics 2008, Frankel and Pissarides. 2009

Users who downloaded this paper also downloaded these:
Bartlesman, Haltiwanger, and Scarpetta w15490 Cross-Country Differences in Productivity: The Role of Allocation and Selection
Alfaro, Charlton, and Kanczuk Plant-Size Distribution and Cross-Country Income Differences
Midrigan and Xu w15647 Finance and Misallocation: Evidence from Plant-level Data
Restuccia and Rogerson w13018 Policy Distortions and Aggregate Productivity with Heterogeneous Plants
Haltiwanger Comment on "Plant-Size Distribution and Cross-Country Income Differences"
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us