Replication data for: The Sources of Capital Misallocation
- David, Joel M.
- Venkateswaran, Venky
AbstractWe develop a methodology to disentangle sources of capital "misallocation," i.e., dispersion in value-added/capital. It measures the contributions of technological/informational frictions and a rich class of firm-specific factors. An application to Chinese manufacturing firms reveals that adjustment costs and uncertainty, while significant, explain only a modest fraction of the dispersion, which stems largely from other factors: a component correlated with productivity and a fixed effect. Adjustment costs are more salient for large US firms, though other factors still account for the bulk of the dispersion. Technological/markup heterogeneity explains a limited fraction in China, but a potentially large share in the United States.
Is supplement to
DOI: 10.1257/aer.20180336 (Text)
David, Joel M., and Venky Venkateswaran. “The Sources of Capital Misallocation.” American Economic Review 109, no. 7 (July 2019): 2531–67. https://doi.org/10.1257/aer.20180336.
- ID: 10.1257/aer.20180336 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07