Misallocation, Establishment Size, and Productivity
构建了一个包含内生进入和生产率投资的企业异质性模型，评估政策扭曲对总产出和平均企业规模的影响，发现扭曲的生产率弹性从美国的0.09升至印度的0.5时，总产出下降53%，平均企业规模下降86%。
We consider a model of heterogeneous production units with endogenous entry and productivity investment to assess the quantitative impact of policy distortions: when the productivity elasticity of distortions increases from 0.09 in the United States to 0.5 in India, aggregate output and average establishment size fall by 53 and 86 percent (37 and 0 percent in the standard factor misallocation model). Entry productivity and factor misallocation contribute equally to the reduction in output, whereas lower life-cycle productivity growth is fully offset by increased entry and reduced productivity dispersion. Establishment size differences are consistent with evidence from a new comprehensive cross-country dataset.