This paper argues that the composition of government spending across sectors, not just its aggregate size, matters for its macroeconomic effects, because reallocating capital across sectors is costly. …
India liberalised foreign equity investment industry by industry in 2001 and 2006, and that staggered timing identifies what the policy did to the *distribution* of capital rather than only its level. …
PublishedClassicQuarterly Journal of EconomicsPublished Nov 2009
In a monopolistic-competition model with heterogeneous firms, a plant's revenue productivity should be equalised within an industry unless the plant faces distortions -- so the dispersion of revenue …
PublishedJournal of Monetary EconomicsPublished Oct 2025
Standard measures of capital allocative efficiency—based on the dispersion of the average revenue product of capital (ARPK)—are severely biased when capital utilization is endogenous. When utilization …
PublishedClassicQuarterly Journal of EconomicsPublished May 2007
Backing the marginal product of capital straight out of output, the capital stock and the capital share gives a return in poor countries more than twice that in rich ones -- until two corrections are …