Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5058384 | Economics Letters | 2016 | 4 Pages |
Abstract
This paper extends the study by Hsieh and Klenow (2009) on productivity implication of resource misallocation by relaxing the assumption of constant returns to scale (CRS) for differentiated products. We show that when the CRS assumption fails, measuring frictions in resource allocation by variation in revenue productivity, as proposed by Hsieh and Klenow (2009), overestimates the resource misallocation in China.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Guan Gong, Guanliang Hu,