Capital Reallocation and Aggregate Productivity
NBER Working Paper No. 19715
This paper studies the productivity implications of cyclical reallocation. Frictions in the reallocation process are a source of factor misallocation. Cyclical movements in these frictions lead to variations in the degree of reallocation and thus in productivity. These frictions also impact the capital accumulation decision. The effects are quantitatively important in the presence of fluctuations in adjustment frictions and/or the cross sectional variation of profitability shocks.
You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.
Users who downloaded this paper also downloaded these: