Effect of policy distortions on aggregate productivity dynamics, the 公开 Deposited

Alpha creator Series 关键词 Subject Abstract
  • We estimate the effects of policy distortions on aggregate productivity. Based on a model of plant production and productivity uncertainty and heterogeneity, and using Chilean manufacturing data, we focus on the effect of taxation on the exit behavior of plants. We find that taxes do distort the liquidation decisions of firms, suggesting that policy distortions reduce the extent to which factors are reallocated towards the most productive plants. Our results have important consequences for growth and development, as policies that alter the measure of plants that operate in equilibrium change the short-run response of output to exogenous shocks and the long run level of aggregate TFP. In particular, we find that the amount of productivity lost due to excessive plant shutdowns are very large.
Corporate name
  • Federal Reserve Bank of Minneapolis. Research Department.
Date created
  • 2003-05
Date modified
  • 04/10/2018
Resource type

关联

属于 Collection:
最新修改

可下载的内容

下载PDF文件

Zipped Files

Download a zip file that contains all the files in this work.

单件