| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 966545 | Journal of Monetary Economics | 2012 | 17 Pages |
Abstract
⺠This is a theory of TFP based on measured institutional differences across countries. ⺠We develop a firm dynamics model with endogenous formal and informal sectors. ⺠Countries with high formality costs are characterized by low allocative efficiency. ⺠They also display a large share output produced by low productivity informal firms. ⺠The model explains between 40% and 70% of TFP differences across countries.
Related Topics
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Economics and Econometrics
Authors
Pablo N. D'Erasmo, Hernan J. Moscoso Boedo,