Published American Economic Journal: Macroeconomics Published Jul 2026Resource Misallocation in European Firms: The Role of Constraints, Firm Characteristics and Managerial DecisionsYuriy Gorodnichenko · Debora Revoltella · Jan Svejnar · Christoph T. WeissThis paper investigates why firms in the European Union exhibit wide dispersion in marginal revenue products (MRP) of capital and labor — a direct indicator of resource misallocation — and asks how …