En poursuivant votre navigation, vous acceptez l'utilisation de cookies destinés à améliorer la performance de ce site et à vous proposer des services et contenus personnalisés.

X

Department Seminar: Pavel Sevcik (Université du Québec à Montréal)

Joint work with Rui Castro

Abstract

We study the aggregate productivity effects of firm-level financial frictions.
Credit constraints affect production and household-level schooling decisions.
In turn, entrepreneurial schooling decisions impact firm-level productivities,
whose cross-sectional distribution becomes endogenous. In anticipation of
future constraints, entrepreneurs under-invest in schooling. Frictions lower
aggregate productivity because talent is misallocated across occupations, and
capital misallocated across firms. Firm-level productivities are also lower due
to schooling distortions. These effects combined account for between 22 and
44 percent of the U.S.-India aggregate productivity difference, depending on
the calibration. Schooling distortions are the major source of aggregate productivity
differences.

Keywords: Aggregate Productivity, Financial Frictions, Entrepreneurship, Human
Capital.

JEL Codes: E24, I25, J24, O11, O15, O16, 047

Read more.

Visit the speaker's website.