Capital Misallocation and Aggregate Factor Productivity

Cite This

Files in this item

Checksum: MD5:7fc745ff32c3bddfa55714d180e6bced

AZARIADIS, Costas, Leo KAAS, 2016. Capital Misallocation and Aggregate Factor Productivity. In: Macroeconomic Dynamics. 20(02), pp. 525-543. ISSN 1365-1005. eISSN 1469-8056. Available under: doi: 10.1017/S1365100514000236

@article{Azariadis2016-03Capit-28503, title={Capital Misallocation and Aggregate Factor Productivity}, year={2016}, doi={10.1017/S1365100514000236}, number={02}, volume={20}, issn={1365-1005}, journal={Macroeconomic Dynamics}, pages={525--543}, author={Azariadis, Costas and Kaas, Leo} }

<rdf:RDF xmlns:dcterms="" xmlns:dc="" xmlns:rdf="" xmlns:bibo="" xmlns:dspace="" xmlns:foaf="" xmlns:void="" xmlns:xsd="" > <rdf:Description rdf:about=""> <bibo:uri rdf:resource=""/> <dcterms:hasPart rdf:resource=""/> <dcterms:issued>2016-03</dcterms:issued> <dcterms:title>Capital Misallocation and Aggregate Factor Productivity</dcterms:title> <dcterms:available rdf:datatype="">2014-07-24T12:46:03Z</dcterms:available> <dcterms:abstract xml:lang="eng">We propose a sectoral–shift theory of aggregate factor productivity for a class of multisector economies with AK technologies and a constant production possibilities frontier. Loans are partly secured by collateral and partly based on reputation. We find that both the growth rate and total factor productivity (TFP) respond to random and persistent endogenous fluctuations in the sectoral distribution of physical capital, which, in turn, responds to reversible exogenous shifts in relative sector productivities. Endogenous debt limits on secured and unsecured loans slow down capital reallocation, preventing the equalization of risk-adjusted equity yields across sectors. Economywide factor productivity and the aggregate growth rate are both negatively correlated with the dispersion of sectoral rates of return, sectoral TFP, and sectoral growth rates. We also find highly volatile limit cycles in economies with small amounts of collateral.</dcterms:abstract> <dc:language>eng</dc:language> <dc:date rdf:datatype="">2014-07-24T12:46:03Z</dc:date> <dc:contributor>Kaas, Leo</dc:contributor> <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/> <dcterms:rights rdf:resource=""/> <foaf:homepage rdf:resource="http://localhost:8080/jspui"/> <dc:rights>terms-of-use</dc:rights> <dc:creator>Azariadis, Costas</dc:creator> <dspace:isPartOfCollection rdf:resource=""/> <dc:contributor>Azariadis, Costas</dc:contributor> <dcterms:isPartOf rdf:resource=""/> <dspace:hasBitstream rdf:resource=""/> <dc:creator>Kaas, Leo</dc:creator> </rdf:Description> </rdf:RDF>

Downloads since Oct 1, 2014 (Information about access statistics)

Azariadis_285032.pdf 284

This item appears in the following Collection(s)

Search KOPS


My Account