Finance and Misallocation: Evidence from Plant-Level Data

By Virgiliu Midrigan, Daniel Yi Xu. 2014

1,119 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/644f3143a83662c09fdde39c69ec2d657bcb7a58

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In Economics and Econometrics

Citations in the corpus

Misallocation and Financial Market Frictions: Some Direct Evidence from the Dispersion in Borrowing Costs (2012, methodology): “Our procedure is derived from the decreasing returns to scale production framework outlined in Midrigan and Xu [2010]; it is also directly related to the TFP accounting procedure emphasized by Hsieh and Klenow [2009].”
The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity (2018, positive): “We build on previous research in empirical industrial organization which explicitly addresses the simultaneity and selection biases involved in the estimation of production functions (Olley and Pakes (1996), Levinsohn and Petrin (2003), and Ackerberg et al.”
Optimal Development Policies With Financial Frictions (2014, positive): “The case θ = 0 corresponds to our baseline in Section 3, where the planner acts exclusively on behalf of (31)Our model is closest to the baseline one-sector model in the working paper version of Midrigan and Xu (2010), who calibrate it to the South Korean development experience.”
Productivity growth in Italy: a tale of a slow-motion change (2018, positive): “…they show that up to three-quarters of the observed decline in TFP induced by allocative inefficiencies can be traced back to financial frictions.24 Midrigan and Xu (2014) suggest that the main effects of financial frictions on misallocation go through the inefficient entry and exit of firms,…”
Zombie Credit and (Dis-)Inflation: Evidence from Europe (2020, background): “3Moll (2014) develops a general equilibrium model to study the effect of financial frictions on capital misallocation and aggregate productivity.”
Housing Collateral and Entrepreneurship (2013, neutral): “Robb and Robinson (2013) document that debt is a large source of financing for start-ups (approximately 44%) and that its availability is related to the scarcity —and therefore the value— of real estate collateral.”
The Causes and Costs of Misallocation (2017, positive): “For example, Midrigan and Xu (2014) find that the magnitude of this effect is no more than about 10 percent (see also Buera, Kaboski, and Shin 2011; Greenwood, Sanchez, and Wang 2013; Moll 2014).”