Revisiting the Facts of Economic Growth: insights from assessing misallocation over 70 years for up to 100 countries

dc.contributor.authorMartinez, Tomas R.
dc.contributor.authorSantos, Thiago Trafane Oliveira
dc.creatorMartinez, Tomas R.
dc.creatorSantos, Thiago Trafane Oliveira
dc.date.accessioned2025-01-20T16:49:01Z
dc.date.available2025-01-20T16:49:01Z
dc.date.issued2024
dc.description.abstractAssessments of the role played by misallocation in shaping total factor productivity (TFP) have been hindered by constraints in the availability of firm-level data. This paper addresses this issue by developing a static Cournot model that primarily requires standard macroeconomic data to estimate market-power-driven misallocation. We apply this framework to decompose aggregate TFP into technology and allocative efficiency components from 1950 to 2019 for up to a hundred countries from the Penn World Table 10.01. Utilizing this decomposition, we revisit key facts of economic growth. On the one hand, we evaluate the world income frontier as proxied by the US, finding that changes in misallocation can significantly impact short-run growth. On the other hand, we examine the economic performance around the world. Misallocation enhances our understanding of cross-country income differences, even though a substantial unexplained portion persists. We also find a lack of convergence in allocative efficiency, suggesting market-power-driven misallocation is linked, in the long run, to long-lasting country-specific factors such as institutions.en
dc.formatDigital
dc.format.extent82 p.
dc.identifier.urihttps://repositorio.insper.edu.br/handle/11224/7248
dc.language.isoInglês
dc.publisherInsper
dc.subjectTFPen
dc.subjectMisallocationen
dc.subjectCournot modelen
dc.subjectDevelopment accountingen
dc.subjectGrowth accountingen
dc.titleRevisiting the Facts of Economic Growth: insights from assessing misallocation over 70 years for up to 100 countries
dspace.entity.typePublication
local.publisher.citySão Paulo
local.publisher.countryBrasil
local.subject.cnpqECONOMIA
local.subject.cnpqADMINISTRAÇÃO
local.subject.cnpqMATEMÁTICA
local.subject.cnpqESTATÍSTICA E PROBABILIDADE
publicationissue.issueNumberBEWP 239/2024

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