- (2007), Fernandes (2007) and Roberts and Tybout (1997) for reference. Indonesian Plant Data: IBS The Indonesian estimation is based on the Manufacturing Survey of Large and Medium establishments (Survei Tahunan Perusahaan Industri Pengolahan, IBS), provided by the National Institute of Statistics (Badan Pusat Statistik, BPS). The survey covers all entities with 20 or more employees. It consist of plant level data on capital stocks, labor costs, output value, intermediate inputs and value added among other variables.
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- • The industry survey have changed their industry classification from ISIC Rev. 2 in 1998 to ISIC Rev. 3 in 1999. We use United Nations concordance tables to construct the four digit industry classification.
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Acemoglu, D., Antras, P., and Helpman, E. (2007). Contracts and technology adoption. American Economic Review, 97(3):916–943.
Amaral, P. S. and Quintin, E. (2010). Limited enforcement, financial intermediation, and economic development: A quantitative assessment. International Economic Review, 51(3):785–811.
- Bachmann, R. and Bayer, C. (2011a). Investment dispersion and the business cycle. NBER Working Papers 16861, National Bureau of Economic Research, Inc.
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- Bachmann, R. and Bayer, C. (2011b). Uncertainty business cycles - really? NBER Working Papers 16862, National Bureau of Economic Research, Inc.
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Banerjee, A. V. and Moll, B. (2010). Why does misallocation persist? American Economic Journal: Macroeconomics, 2(1):189–206.
Bartelsman, E., Haltiwanger, J., and Scarpetta, S. (2013). Cross-country differences in productivity: The role of allocation and selection. American Economic Review, 103(1):305–34.
Blalock, G. and Gertler, P. J. (2009). How firm capabilities affect who benefits from foreign technology. Journal of Development Economics, 90(2):192–199.
Buera, F. J., Kaboski, J. P., and Shin, Y. (2011). Finance and development: A tale of two sectors. American Economic Review, 101(5):1964–2002.
Caballero, R. J., Engel, E. M. R. A., and Haltiwanger, J. C. (1995). Plant-level adjustment and aggregate investment dynamics. Brookings Papers on Economic Activity, 26(2):1–54.
- Chilean Plant Data: ENIA We use the Annual Census of Manufacturing (Encuesta Nacional Industrial Anual, ENIA) conducted by the National Institute of Statistics (Instituto Nacional de Estadsticas, INE) from 1995 to 2007 to get plant level data from Chile.
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- Colombian Plant Data: EAM For Colombian estimates, we exploit the plant-level data from the Colombian Manufacturing Survey (Encuesta Anual Manufacturera, EAM) made available through the National Institute of Statistics (Departamento Administrativo Nacional de Estaditicas, DANE) for the period 1977 to 1991. The survey covers information from all plants during 1977-1982, while only contains data on plants above 10 employees during 1983-1984 and from 1985 small plants are included in small proportion. See, for example, Das et al.
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Das, S., Roberts, M. J., and Tybout, J. R. (2007). Market entry costs, producer heterogeneity, and export dynamics. Econometrica, 75(3):837–873.
Dixit, A. (1997). Investment and employment dynamics in the short run and the long run. Oxford Economic Papers, 49(1):1–20.
Doms, M. and Bartelsman, E. J. (2000). Understanding productivity: Lessons from longitudinal microdata. Journal of Economic Literature, 38(3):569–594.
Fernandes, A. M. (2007). Trade policy, trade volumes and plant-level productivity in colombian manufacturing industries. Journal of International Economics, 71(1):52–71.
Foster, L., Haltiwanger, J. C., and Krizan, C. J. (2001). Aggregate productivity growth. lessons from microeconomic evidence. In New Developments in Productivity Analysis, NBER Chapters, pages 303–372. National Bureau of Economic Research, Inc.
Foster, L., Haltiwanger, J., and Syverson, C. (2008). Reallocation, firm turnover, and efficiency: Selection on productivity or profitability? The American Economic Review, 98(1):394–425.
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Gilchrist, S. and Williams, J. C. (2005). Investment, capacity, and uncertainty: A putty-clay approach. Review of Economic Dynamics, 8(1):1–27.
Gilchrist, S., Sim, J. W., and Zakrajek, E. (2013). Misallocation and financial market frictions: Some direct evidence from the dispersion in borrowing costs. Review of Economic Dynamics, 16(1):159 – 176. ce:titleSpecial issue: Misallocation and Productivity/ce:title.
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- However, we have information on depreciation only until 2001. We use the median depreciation rate of each capital stock (by industry) before 2001, and we multiply it with the reported capital after 2001, to construct a measure of depreciation level for the latter period.
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Hsieh, C.-T. and Klenow, P. J. (2009). Misallocation and manufacturing tfp in china and india. The Quarterly Journal of Economics, 124(4):1403–1448.
- In addition, we have missing values in capital for plants who presented information in previous and/or subsequent years. In order to overcome with this issue, we follow Vial (2006) and we estimate the capital category using the following regression by two-digit sectoral level: ln Kit = β0 + β1 ln Kit−1 + θ ln Xit−1 + i + it where Kit is the capital category, i is the individual fixed effect and Xit−1 are a set of explanatory variables (total output, input, employees, wages, fuel costs and expenditures on materials,leasing, industrial services, taxes and others). Given that we have the lagged capital category as explanatory variable, we will only impute the capital for those cases where the plant have reported a value for the previous period. Otherwise, we do not impute it.13 Finally, to proceed with the PIM, we need depreciation level from each capital source.
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- Johansen, L. (1959). Substitution versus fixed production coefficients in the theory of economic growth: A synthesis. Econometrica, 27(2):pp. 157–176.
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Kaboski, J. P. (2005). Factor price uncertainty, technology choice and investment delay. Journal of Economic Dynamics and Control, 29(3):509–527.
- Midrigan, V. and Xu, D. Y. (2013). Finance and misallocation: Evidence from plant-level data. Forthcoming in American Economic Review, -:–.
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Moll, B. (2014). Productivity losses from financial frictions: Can self-financing undo capital misallocation? Forthcoming in American Economic Review.
Pavcnik, N. (2002). Trade liberalization, exit, and productivity improvement: Evidence from chilean plants. Review of Economic Studies, 69(1):245–76.
Peters, M. (2011). Heterogeneous mark-ups and endogenous misallocation. 2011 Meeting Papers 78, Society for Economic Dynamics.
Ravn, M. O. and Uhlig, H. (2002). On adjusting the hodrick-prescott filter for the frequency of observations. The Review of Economics and Statistics, 84(2):371–375.
Restuccia, D. and Rogerson, R. (2008). Policy distortions and aggregate productivity with heterogeneous plants. Review of Economic Dynamics, 11(4):707–720.
Roberts, M. J. and Tybout, J. R. (1997). The decision to export in colombia: An empirical model of entry with sunk costs. American Economic Review, 87(4):545–64.
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- Stoess, E. (2001). Schmollers Jahrbuch: Zeitschrift fuer Wirtschafts- und Sozialwissenschaften (Journal of Applied Social Science Studies), 121:131–137.
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Syverson, C. (2011). What determines productivity? Journal of Economic Literature, 49(2):326–65.
Tauchen, G. (1986). Finite state markov-chain approximations to univariate and vector autoregressions. Economics Letters, 20(2):177–181.
- The Bundesbank had to assess the creditworthiness of all parties backing promissory notes or bills of exchange put up for rediscounting (i.e. as collateral for overnight lending). It implemented this regulation by requiring balance sheet data of all parties involved, which were then archived and collected, see Bachmann and Bayer (2011b), Stoess (2001), and von Kalckreuth (2003) for details.
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- The ENIA provides information for all manufacturing plants with total employment of at least ten employees. According to INE statistics, ENIA covers about 50% of total manufacturing employment. The data was used for example by Pavcnik (2002) and Doms and Bartelsman (2000).
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- The Indonesian data was employed, for example, by Blalock and Gertler (2009), Peters (2011) and Yang (2012).
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van der Eng, P. (2008). Capital formation and capital stock in indonesia, 1950-2007.
Venkateswaran, V., Hopenhayn, H. A., and David, J. (2013). The informativeness of stock prices, misallocation and aggregate productivity. 2013 Meeting Papers 455, Society for Economic Dynamics.
Vial, V. (2006). New estimates of total factor productivity growth in indonesian manufacturing. Bulletin of Indonesian Economic Studies, 42(3):357–369.
von Kalckreuth, U. (2003). Exploring the role of uncertainty for corporate investment decisions in germany. Swiss Journal of Economics and Statistics (SJES), 139(II):173– 206.
- We remove observations from East German firms to avoid a break of the series in 1990. This leaves us with a sample of 854,105 firm-year observations, which corresponds to observations on 72,853 firms. The resulting sample covers roughly 70% of the WestGerman real gross value added in the private non-financial business sector.12 We refer to the sectors Agriculture, Energy and Mining, Manufacturing, Construction, and Trade together as the private non-financial business sector throughout this paper.
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- Yang, M.-J. (2012). Micro-level misallocation and selection: Estimation and aggregate implications. Mimeo, Department of Economics, University of Washington, Seattle. A Data A.1 Description of the Databases German Firm Data: USTAN USTAN is itself a byproduct of the Bundesbank’s rediscounting and lending activity.
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