Predation, Protection, and Productivity: A Firm-Level Perspective
Timothy Besley () and
American Economic Journal: Macroeconomics, 2018, vol. 10, issue 2, 184-221
This paper studies the consequences of predation when firms deploy guard labor as a means of protecting themselves. We build a simple model and combine it with data for 144 countries from the World Bank enterprise surveys, which ask about firm-level experiences with predation and spending on protection. We use the model to estimate the output loss caused by the misallocation of labor across firms and from production to protection. The loss due to protection effort is substantial and patterns of state protection at the micro level can have a profound impact on aggregate output losses. Various extensions are discussed.
JEL-codes: D22 D24 J24 K40 L84 O17 (search for similar items in EconPapers)
Note: DOI: 10.1257/mac.20160120
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... Pj6KIvYACKToHjvGGWqF (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... E6jQ-y3BPhirLp52VJVa (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... Sy3A0nrpUdYsxnTXKv-c (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Predation, protection, and productivity: a firm-level perspective (2018)
Working Paper: Predation, Protection and Productivity: A Firm-Level Perspective (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aejmac:v:10:y:2018:i:2:p:184-221
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Journal: Macroeconomics is currently edited by Simon Gilchrist
More articles in American Economic Journal: Macroeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().