Misallocation and the recovery of manufacturing TFP after a.pdf

2013 | 01 Working Paper Norges Bank Research Misallocation and the recovery of manufacturing TFP after a financial crisis Kaiji Chen and Alfonso Irarrazabal Working papers fra Norges Bank, fra 1992/1 til 2009/2 kan bestilles over e-post: servicesenter@norges-bank.no Fra 1999 og senere er publikasjonene tilgjengelige på www.norges-bank.no Working papers inneholder forskningsarbeider og utredninger som vanligvis ikke har fått sin endelige form. Hensikten er blant annet at forfatteren kan motta kommentarer fra kolleger og andre interesserte. Synspunkter og konklusjoner i arbeidene står for forfatternes regning. Working papers from Norges Bank, from 1992/1 to 2009/2 can be ordered by e-mail: servicesenter@norges-bank.no Working papers from 1999 onwards are available on www.norges-bank.no Norges Bank’s working papers present research projects and reports (not usually in their final form) and are intended inter alia to enable the author to benefit from the comments of colleagues and other interested parties. Views and conclusions expressed in working papers are the responsibility of the authors alone. ISSN 1502-8143 (online) ISBN 978-82-7553-715-5 (online) Misallocation and the Recovery of Manufacturing TFP after a Financial Crisis Kaiji Cheny Alfonso Irarrazabalz January 2013 Abstract The Chilean economy experienced a decade of sustained growth in aggregate out- put and productivity after the 1982 Önancial crisis. This paper analyzes the e§ects of resource misallocation on total factor productivity (TFP) of the manufacturing sector by applying the methodology of Hsieh and Klenow (2009) to the establishment data from the Chilean manufacturing census. We Önd that a reduction in resource