This paper quantifies how idiosyncratic firm-level risk affects aggregate output, TFP, and firm life-cycle growth in an environment where firm productivity evolves endogenously through risky …
Keynes's idea that shocks to the marginal efficiency of investment drive fluctuations is placed inside a neoclassical model in which firms choose how hard to run their capital; a shock that raises the …
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 …
Online FirstReview of Economic StudiesOnline 22 May 2026
When employers face a trade-off between growing large and paying low wages — that is, when they have monopsony power — some productive employers will decide to acquire fewer customers, forgo sales, …
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 …
This paper asks why so much labor stays in low-productivity agriculture in developing countries, and treats the county-by-county rollout of China's New Rural Pension Scheme (NRPS) between 2009 and …
Online FirstReview of Economic StudiesOnline 9 Jul 2026
Gaggl, Gorry, and vom Lehn document that services sectors produce a rising share of output in both of the US production networks they study — the input-output network for intermediate inputs and the …
PublishedClassicThe Review of Economics and StatisticsPublished Aug 1957
Robert Solow's 1957 paper proposes a simple method for separating shifts in the aggregate production function ("technical change," broadly defined) from movements along it caused by capital …
Online FirstJournal of Economic GrowthOnline 29 Jul 2026
Since the mid-1990s computing revolution, advanced economies have shown a cluster of regularities — a decade-long productivity boom followed by a slowdown below trend, a sharply declining labour …
Online FirstReview of Economic StudiesOnline 17 Jun 2026
Using the 2001 Hungarian capital account liberalization as a quasi-natural experiment and census-level firm data covering the entire economy (1992–2008), the paper identifies two channels through …