Replication data for: Misallocation and the Distribution of Global Volatility
- Eden, Maya
AbstractDecreasing returns at the macro level are an outcome of efficiency at the micro level. When inputs are scarce, an efficient economy carries out only the most productive projects; when inputs are abundant, the economy implements less productive projects as well. This link between decreasing returns and efficiency suggests that misallocation can reduce the extent of aggregate decreasing returns. I formalize this connection and establish two main results: (i) misallocation amplifies the volatility of output with respect to fluctuations in inputs; and (ii) financial integration amplifies shocks in relatively distorted economies, but mitigates them in less distorted economies.
Is supplement to
DOI: 10.1257/aer.20150314 (Text)
Eden, Maya. “Misallocation and the Distribution of Global Volatility.” American Economic Review 107, no. 2 (February 2017): 592–622. https://doi.org/10.1257/aer.20150314.
- ID: 10.1257/aer.20150314 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12