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Firm Microstructure and Aggregate Productivity

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  • HUGO A. HOPENHAYN

Abstract

Models of firm microstructure are becoming now a standard building block in macroeconomics, trade, and development. This literature builds on the recognition that firm heterogeneity and the allocation of resources across firms plays a key role in determining aggregate productivity and the gains from trade. Barriers to the efficient allocation of resources across firms have been recently recognized to play a key role in economic development. This paper focuses on this methodological contribution, the link between firm microstructure and economic aggregates.

Suggested Citation

  • Hugo A. Hopenhayn, 2011. "Firm Microstructure and Aggregate Productivity," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 43(s1), pages 111-145, August.
    • Handle: RePEc:wly:jmoncb:v:43:y:2011:i:s1:p:111-145
    DOI: 10.1111/j.1538-4616.2011.00412.x
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