Essays in firm dynamics and misallocation

This dissertation consists of three essays that investigate the drivers of misallocation of resources and its macroeconomic implications. The first chapter highlights the importance of the caste system in India in explaining capital misallocation. Using a quantitative model, it finds that the differ...

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Detalles Bibliográficos
Autor: Goraya, Sampreet Singh
Tipo de recurso: tesis doctoral
Estado:Versión publicada
Fecha de publicación:2021
País:España
Institución:CBUC, CESCA
Repositorio:TDR. Tesis Doctorales en Red
OAI Identifier:oai:www.tdx.cat:10803/672655
Acceso en línea:http://hdl.handle.net/10803/672655
Access Level:acceso abierto
Palabra clave:Misallocation of resources
Mala Assignació de recursos
Mala asignación de recursos
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Descripción
Sumario:This dissertation consists of three essays that investigate the drivers of misallocation of resources and its macroeconomic implications. The first chapter highlights the importance of the caste system in India in explaining capital misallocation. Using a quantitative model, it finds that the difference in capital allocation across castes is explained by differences in access to credit and that such asymmetries reduce aggregate TFP by 6% to 10%. The second chapter studies the properties of intangible capital, which includes investments in research and development, and intellectual property product and how they influence the empirical measures of misallocation. It shows that intangible capital entails higher investment adjustment costs than traditional capital. Using a model of firm dynamics, this chapter links the increasing input share of intangible capital to the rising average firm size, dispersion in total factor productivity revenue, and increasing industry concentration. The final chapter provides evidence of the market power of firms in public procurement. Firms that access procurement contracts increase their markups and profits relative to others. Limited competition in public procurement is a potential driver behind these findings and this generates markup dispersion across firms.