TY - JOUR
T1 - Natural resources and global misallocation
AU - Monge-Naranjo, Alexander
AU - Sánchez, Juan M.
AU - Santaeulàlia-Llopis, Raül
N1 - Funding Information:
* Monge-Naranjo: Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza Broadway and Locust Street, St. Louis, MO 63102, and Washington University in St. Louis (email: Alexander.MongeNaranjo@ stls.frb.org); Sánchez: Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza Broadway and Locust Street, St. Louis, MO 63102, and Washington University in St. Louis (email: juan.m.sanchez78@gmail. com). Santaeulàlia-Llopis: MOVE-UAB and Barcelona GSE, Plaça Civica s/n, Bellaterra, Barcelona 08193, Spain (email: rauls@movebarcelona.eu). Virgiliu Midrigan was coeditor for this article. Santaeulàlia-Llopis thanks the ERC AdG-GA324048 Asset Prices and Macro Policy when Agents Learn (APMPAL) and the Spanish Ministry of Economy and Competitiveness through the Severo Ochoa Programme for Centers of Excellence in R&D (SEV-2015-0563) for financial support. We thank Manuel Amador, Andrew Atkeson, Ariel Burstein, James Feyrer, Giovanni Gallipoli, Jeremy Greenwood, Berthold Herrendorf, Chang Tai Hsieh, Rody Manuelli, and seminar participants at many venues for comments and suggestions. We would also like to thank Esther Naikal and Glenn-Marie Lange of The Changing Wealth of Nations group at the World Bank for their guidance with their data. We also thank Faisal Sohail and Brian Greaney for superb research assistance. The views expressed here are those of the authors and do not necessarily reflect those of the Federal Reserve Bank of St. Louis or the Federal Reserve System.
Publisher Copyright:
© American Economic Journal: Applied Economics 2019.
PY - 2019
Y1 - 2019
N2 - Are production factors allocated efficiently across countries? To differentiate misallocation from factor intensity differences, we provide a new methodology to estimate output shares of natural resources based solely on current rent flows data. With this methodology, we construct a new dataset of estimates for the output shares of natural resources for a large panel of countries. In sharp contrast with Caselli and Feyrer (2007 ), we find a significant and persistent degree of misallocation of physical capital. We also find a remarkable movement toward efficiency during last 35 years, associated with the elimination of interventionist policies and driven by domestic accumulation.
AB - Are production factors allocated efficiently across countries? To differentiate misallocation from factor intensity differences, we provide a new methodology to estimate output shares of natural resources based solely on current rent flows data. With this methodology, we construct a new dataset of estimates for the output shares of natural resources for a large panel of countries. In sharp contrast with Caselli and Feyrer (2007 ), we find a significant and persistent degree of misallocation of physical capital. We also find a remarkable movement toward efficiency during last 35 years, associated with the elimination of interventionist policies and driven by domestic accumulation.
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U2 - 10.1257/MAC.20170381
DO - 10.1257/MAC.20170381
M3 - Article
AN - SCOPUS:85065901715
SN - 1945-7707
VL - 11
SP - 79
EP - 126
JO - American Economic Journal: Macroeconomics
JF - American Economic Journal: Macroeconomics
IS - 2
ER -