Market failures and misallocation

• 成果类型: Article
• 署名作者: Shenoy, Ajay
• 署名单位: University of California System; University of California Santa Cruz
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2017.05.004
• 发表日期: 2017
• 页码: 65-80
• 关键词: Misallocation; agriculture; Imperfect markets

摘要

I develop a method to measure and separate the production misallocation caused by failures in factor markets versus financial markets. When I apply the method to rice farming villages in Thailand I find surprisingly little misallocation. Optimal reallocation would increase output by less than 19 percent. By 2007 most misallocation comes from factor market failures. I derive a decomposition of aggregate growth that accounts for misallocation. Declining misallocation contributes little to growth compared to factor accumulation and rising farm productivity. I use a government credit intervention to test my measures. I confirm that credit causes a statistically significant decrease in financial market misallocation, but has no effect on factor market misallocation.