Productivity Losses from Financial Frictions: Can Self-Financing Undo Capital Misallocation?

By Benjamin Moll. 2014

838 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/c48836a54951e8a876074f476ae8cdb111816912

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Citations in the corpus

Identifying Constraints to Financial Inclusion and Their Impact on GDP and Inequality: A Structural Framework for Policy (2015, background): “7See Banerjee and Newman (2003), Buera and Shin (2013), and Moll (2014) for a similar motivation of this type of constraint.”
Agricultural Decisions after Relaxing Credit and Risk Constraints (2012, neutral): “…stocks to accommodate the rainfall shocks, weakening the response of investment to improvements in insurance when capital constraints are not currently binding (Buera and Shin 2011; Moll 2012).7 While …”
Capital Allocation and Productivity in South Europe (2017, background): “Recently, several papers have endogenized TFP as a function of financial frictions in dynamic models (Midrigan and Xu, 2014; Moll, 2014; Buera and Moll, 2015).”
Credit Misallocation During the European Financial Crisis (2017, neutral): “On the one hand, Moll (2014) shows that the impact of financial frictions on TFP are large and persistent, i.e. they cannot be undone by self-financing of firms, and Yang (2011) shows that micro-level frictions, including credit frictions, can generate sizeable aggregate TFP losses by distorting…”
Misallocation and Capital Market Integration: Evidence From India (2020, neutral): “…countries (e.g., Guner, Ventura, and Xu, 2008; Banerjee and Moll, 2010).6 Second, it contributes to the literature on the effects of financial frictions and misallocation (e.g., Buera, Kaboski, and Shin; 2011; Midrigan and Xu, 2014; Moll, 2014; Hombert and Matray, 2016; Kehrig and Vincent, 2019).”
The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity (2018, neutral): “First, we consider the approach proposed by Olley and Pakes (1996) (hereafter OP).”
The Facts of Economic Growth (2015, background): “…their effects on TFP. Asker, Collard-Wexler and Loecker (2011) examine the role of volatility and adjustment costs in explaining variation in TFPR and TFPQ. Midrigan and Xu (2014) and Moll (2014) study the extent to which credit market frictions can generate misallocation and TFP losses.”
Heterogeneous Markups, Growth, and Endogenous Misallocation (2020, background): “18There is mounting evidence for the importance of “stagnant” entrepreneurs in developing economics; see, for example, Schoar (2010), Hurst and Pugsley (2012), and Akcigit et al.”
On the Measure of Distortions (2014, background): “I also show that the size distributions generated by the distortions considered in Restuccia and Rogerson [2008] can be also rationalized with distortions that imply much smaller TFP decrease (e.”
Trends and Cycles in China’s Macroeconomy (2016, neutral): “More generally, our theory contributes to the emerging literature on the role of financial- market imperfections in economic development (Buera and Shin 2013; Moll 2014).”
The Welfare Effects of Encouraging Rural-Urban Migration (2018, background): “It is worth emphasizing that this case is more likely to occur the lower is the return to saving, R, since for higher savings rates, workers can self-finance and save their way out of these credit constraints (see, e.g., Donovan, 2016; Midrigan and Xu, 2014; Moll, 2014).”
Financial Frictions and the Great Productivity Slowdown (2017, methodology): “6 Building on the identification of production function as proposed by Olley and Pakes (1996) and Levinsohn and Petrin (2003), Wooldridge (2009) provides a single-equation instrumental variable approach to control for the correlation between factor inputs (intermediates) and unobserved firm producti”