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dc.contributor.authorBanerjee, Abhijit
dc.contributor.authorMoll, Benjamin
dc.date.accessioned2018-02-20T16:47:30Z
dc.date.available2018-02-20T16:47:30Z
dc.date.issued2010-01
dc.identifier.issn1945-7707
dc.identifier.issn1945-7715
dc.identifier.urihttp://hdl.handle.net/1721.1/113837
dc.description.abstractRecent papers argue that the misallocation of resources can explain large cross-country TFP differences. This argument is underpinned by empirical evidence documenting substantial dispersion in the marginal products of resources, particularly capital, in developing countries. But why does misallocation persists? That is, why don't distortions disappear on their own? This is particularly true for capital misallocation, a point we illustrate in a simple model of capital accumulation with credit constraints. We distinguish between misallocation on the intensive and the extensive margin, and show that the former should disappear asymptotically under general conditions, while the latter may persist. We conclude by discussing possible theories of persistent misallocation.en_US
dc.publisherAmerican Economic Associationen_US
dc.relation.isversionofhttp://dx.doi.org/10.1257/mac.2.1.189en_US
dc.rightsArticle is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.en_US
dc.sourceAmerican Economic Associationen_US
dc.titleWhy Does Misallocation Persist?en_US
dc.typeArticleen_US
dc.identifier.citationBanerjee, Abhijit V., and Moll, Benjamin. “Why Does Misallocation Persist?” American Economic Journal: Macroeconomics 2, 1 (January 2010): 189–206 © 2017 American Economic Associationen_US
dc.contributor.mitauthorBanerjee, Abhijit
dc.contributor.mitauthorMoll, Benjamin
dc.relation.journalAmerican Economic Journal: Macroeconomicsen_US
dc.eprint.versionFinal published versionen_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dc.date.updated2018-02-20T15:05:06Z
dspace.orderedauthorsBanerjee, Abhijit V.; Moll, Benjaminen_US
dspace.embargo.termsNen_US
dc.identifier.orcidhttps://orcid.org/0000-0001-9923-6088
mit.licensePUBLISHER_POLICYen_US


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