Productivity from the Bottom Up: Firms and Resource Allocation in Latin America

@inproceedings{Pags2010ProductivityFT,
  title={Productivity from the Bottom Up: Firms and Resource Allocation in Latin America},
  author={C. Pejoan Pag{\'e}s},
  year={2010}
}
Consider a leading sports team. To succeed, it must be staffed with good players and they must be placed in the right positions. Just like a successful sports team, the productivity of an economy depends on two basic factors: the productivity of its firms (the players) and the allocation of its available resources (labor and capital) among its firms (the positions). And just as a team full of stars can play poorly if players are assigned to the wrong positions, aggregate productivity depends on… CONTINUE READING