Misallocation and aggregate productivity across time and space

Restuccia, Diego

doi:10.1111/caje.12364

Cited by 18 publications

(4 citation statements)

References 75 publications

(153 reference statements)

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“…Individual j in family i faces implicit distortions to operating a farm, measured by τ ij . We allow for the farm distortion to feature a component that is correlated with farm-operating ability and a component that is uncorrelated, similar to how idiosyncratic wedges are modeled in Bento and Restuccia (2017) and Restuccia (2019),…”

Section: Parameterizationmentioning

confidence: 99%

Land Security and Mobility Frictions

Adamopoulos¹,

Brandt²,

Chen³

et al. 2022

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Frictions that impede the mobility of workers across occupations and space are a prominent feature of developing countries. We disentangle the role of insecure property rights from other labor mobility frictions for the reallocation of labor from agriculture to non-agriculture and from rural to urban areas. We combine rich household and individual-level panel data from China and an equilibrium quantitative framework featuring sorting of workers across locations and occupations. We explicitly model the farming household and the endogenous decisions of who operates the family farm and who potentially migrates, capturing an additional channel of selection within the household. We find that land insecurity has substantial negative effects on agricultural productivity and structural change, raising the share of rural households operating farms by over 40 percentage points and depressing agricultural productivity by more than 20 percent. Comparatively, these quantitative effects are as large as those from all residual labormobility frictions. We measure a sharp reduction in overall labor mobility barriers over 2004-2018 in the Chinese economy, all accounted for by improved land security, consistent with reforms covering rural land in China during the period.

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Section: Parameterizationmentioning

confidence: 99%

Land Security and Mobility Frictions

Adamopoulos¹,

Brandt²,

Chen³

et al. 2022

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“…There is an argument to advocate for both approaches. Literature has documented losses of productivity in terms of TFP from sectoral misallocation of both labor and capital (Restuccia and Rogerson, 2017;Restuccia, 2019). There would also be a good argument for implementing the shock as a change in labor productivity, as reallocation of workers often leads to a loss is productivity in terms of misallocation of sector-specific human capital (Kambourov, 2009).…”

Section: Combining Insights From Both Modelsmentioning

confidence: 99%

Modeling Trade Tensions

Hunt

Mursula²,

Portillo³

et al. 2020

IMF Working Papers

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In this paper, we investigate the mechanisms through which import tariffs impact the macroeconomy in two large scale workhorse models used for quantitative policy analysis: a computational general equilibrium (CGE) model (Purdue University GTAP model) and a multi-country dynamic stochastic general equilibrium (DSGE) model (IMF GIMF model). The quantitative effects of an increase in tariffs reflect different mechanisms at work. Like other models in the trade literature, in GTAP higher tariffs generate a loss in terms of output arising from an inefficient reallocation of resources between sectors. In GIMF instead, as in other DSGE models, tariffs act as a disincentive to factor utilization. We show that the two models/channels can be broadly interpreted as capturing the impact of tariffs on different components of a country’s aggregate production function: aggregate productivity (GTAP) and factor supply/utilization (GIMF). We discuss ways to combine the estimates from these two models to provide a more complete assessment of the macro effects of tariffs.

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“…The first aspect is land allocation and productivity, which shows that there is a close relationship between land resource allocation and productivity. Optimizing the allocation of agricultural land resources is of great importance in improving agricultural production and productivity [5][6][7][8]. In urban industrial production, misallocation of urban construction land resources will significantly reduce urban technological innovation and production efficiency [9].…”

Section: Introductionmentioning

confidence: 99%

The Regional Effect of Land Transfer on Green Total Factor Productivity in the Yangtze River Delta: A Spatial Econometric Investigation

Yan,

Yan

2023

Land

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This paper investigates the spatial mechanisms and impacts of land transfer on green total factor productivity (GTFP) in the economically dynamic Yangtze River Delta region of China. Using urban-level panel data from 2007 to 2020 and applying spatial econometric models, the study examines the relationship between land transfer and GTFP. The results of the spatial econometric analysis show that land transfer in the overall Yangtze River Delta region contributes positively to the improvement of GTFP. The mediating mechanism of industrial restructuring and upgrading shows statistically significant effects. Further investigation reveals differences in the spatial interdependence of land transfer on the GTFP among cities in different regions. Land transfer in the core area has significant indirect effects on the GTFP of neighboring cities, while the impact of land transfer in peripheral cities on the GTFP of surrounding cities is less discernible. This suggests that there is still a need for further deepening and development of integration in peripheral cities, as factor integration is still insufficient. The findings of this study provide useful insights for local governments in optimizing land transfer practices and promoting industrial transformation, upgrading, and sustainable green development.

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Misallocation and aggregate productivity across time and space

Cited by 18 publications

References 75 publications

Land Security and Mobility Frictions

Land Security and Mobility Frictions

Modeling Trade Tensions

The Regional Effect of Land Transfer on Green Total Factor Productivity in the Yangtze River Delta: A Spatial Econometric Investigation

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