TY  - JOUR
AU  - Alfaro, Laura
AU  - Charlton, Andrew
AU  - Kanczuk, Fabio
TI  - Plant-Size Distribution and Cross-Country Income Differences
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14060
PY  - 2008
Y2  - June 2008
DO  - 10.3386/w14060
UR  - http://www.nber.org/papers/w14060
L1  - http://www.nber.org/papers/w14060.pdf
N1  - Author contact info:
Laura Alfaro
Harvard Business School
Morgan Hall 263
Soldiers Field
Boston, MA 02163
Tel: 617/495-7981
Fax: 617/496-5985
E-Mail: lalfaro@hbs.edu

Andrew Charlton
London School of Economics
Houghton Street
London, WC2A 2AE, U.K
E-Mail: andrew.h.charlton@gmail.com

Fabio Kanczuk
University of São Paulo
R. Dr Alberto Cardoso de Melo Neto 110/131A
Sao Paulo-S.P.-CEP 01455-100
BRAZIL
Tel: 55-11-3814-9749
E-Mail: kanczuk@usp.br
M1  - published as Laura Alfaro, Andrew Charlton, Fabio Kanczuk. "Plant-Size Distribution and Cross-Country Income Differences," in Jeffrey Frankel and Christopher Pissarides, organizers, "NBER International Seminar on Macroeconomics 2008" University of Chicago Press (2009)

AB  - We investigate, using plant-level data for 79 developed and developing countries, whether differences in the allocation of resources across heterogeneous plants are a significant determinant of cross-country differences in income per worker. For this purpose, we use a standard version of the neoclassical growth model augmented to incorporate monopolistic competition among heterogeneous plants. For our preferred calibration, the model explains 58% of the log variance of income per worker. This figure should be compared to the 42% success rate of the usual model.
ER  -