This paper measures trends in factor misallocation in India between 1999 and 2014, using data from a rich panel of Indian firms. The misallocation of a factor is modeled as an adjustment cost, that is, an implicit variable cost incurred by a firm when using that factor. Trends in the adjustment cost are estimated using a new adaptation of the firm-level cost-minimization approach. The paper documents these trends for four factors of production (permanent...
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ПОДРОБНАЯ ИНФОРМАЦИЯ
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2022/05/17
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Рабочий документ в рамках исследования вопросов политики
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WPS10048
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1
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2022/05/17
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Disclosed
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Firm-Level Input Distortion in Indian States