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Publications
Publications
  • 2009
  • Chapter
  • NBER International Seminar on Macroeconomics 2008

Plant-Size Distribution and Cross-Country Income Differences

By: Laura Alfaro, Andrew Charlton and Fabio Kanczuk
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Abstract

We investigate, using plant-level data for 79 developed and developing countries, whether differences in the allocation of resources across heterogeneous plants are a significant determinant of cross-country differences in income per worker. For this purpose, we use a standard version of the neoclassical growth model augmented to incorporate monopolistic competition among heterogeneous plants. For our preferred calibration, the model explains 58% of the log variance of income per worker. This figure should be compared to the 42% success rate of the usual model.

Keywords

Factories, Labs, and Plants; Developing Countries and Economies; Wages; Resource Allocation; Mathematical Methods

Citation

Alfaro, Laura, Andrew Charlton, and Fabio Kanczuk. "Plant-Size Distribution and Cross-Country Income Differences." In NBER International Seminar on Macroeconomics 2008, edited by Jeffrey A. Frankel and Christopher Pissarides. Cambridge, MA: National Bureau of Economic Research, 2009.

About The Authors

Laura Alfaro

General Management
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Fabio Kanczuk

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More from the Authors

    • 2022
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    Distributional Consequences of Monetary Policy Across Races: Evidence from the U.S. Credit Register

    By: Laura Alfaro, Ester Faia and Camelia Minoiu
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    El Salvador: Launching Bitcoin as Legal Tender

    By: Laura Alfaro, Carla Larangeira and Ruth Costas
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    Can Evidence-Based Information Shift Preferences Towards Trade Policy?

    By: Laura Alfaro, Maggie X. Chen and Davin Chor
More from the Authors
  • Distributional Consequences of Monetary Policy Across Races: Evidence from the U.S. Credit Register By: Laura Alfaro, Ester Faia and Camelia Minoiu
  • El Salvador: Launching Bitcoin as Legal Tender By: Laura Alfaro, Carla Larangeira and Ruth Costas
  • Can Evidence-Based Information Shift Preferences Towards Trade Policy? By: Laura Alfaro, Maggie X. Chen and Davin Chor
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