The Aggregate and Complementary Impact of Micro Distortions
Raphael Bergoeing (),
Norman Loayza () and
Facundo Piguillem ()
No 1426, 2011 Meeting Papers from Society for Economic Dynamics
We explore how regulatory or institutional distortions to resource reallocation limit the ability of developing countries to adopt new technologies. An efficient economy innovates quickly; but when the economy is unable to redeploy resources away from inefficient uses, technological adoption becomes sluggish, growth is reduced, and income lags further behind the leading economy. We use a firm dynamics model to analyze income gaps between the U.S. and several developing countries. For the median country, the model accounts for one-third of the income gap with respect to the U.S., with 60% of the simulated gap explained by firm renewal distortions taken individually and 40% by their interaction.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: The Aggregate and Complementary Impact of Micro Distortions (2011)
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:red:sed011:1426
Access Statistics for this paper
More papers in 2011 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().