Cross-Sector Misallocation with Sector-Specific Distortions
In this paper, the author seeks to sharpen the understanding of the economic channels through which sector-specific distortions affect aggregate outcomes. Thea author pay special attention on how cross-sector misallocation might arrive as a result...
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| Language: | English |
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Published by Oxford University Press on behalf of the World Bank
2019
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| Online Access: | http://documents.worldbank.org/curated/en/479881565591297393/Cross-Sector-Misallocation-with-Sector-Specific-Distortions http://hdl.handle.net/10986/32230 |
| Summary: | In this paper, the author seeks to
sharpen the understanding of the economic channels through
which sector-specific distortions affect aggregate outcomes.
Thea author pay special attention on how cross-sector
misallocation might arrive as a result of these distortions,
and clarify how models of resource misallocation across
heterogeneous firms differ from models of resource
misallocation across sectors. The author present facts that
suggest the presence of such distortions in Mexico, a
noteworthy developing country. The paper highlights the
importance of understanding the origin and nature of
sector-specific distortions for policy design. |
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