Research

Do Productivity Shocks Cause Inputs Misallocation?

Under Review

Firms exhibit varying productivity levels even within narrowly defined industries and face uncertainty when predicting future performance. This paper investigates

the link between productivity uncertainty, heterogeneity, and misallocation across

all inputs. Using a model where heterogeneous firms face staggered productivity

shocks, creating gaps between expected and actual productivity, I find a positive

association between marginal revenue product dispersions and productivity variability.

The analysis reveals that productivity shocks predominantly drive marginal

revenue product dispersions. By comparing baseline estimates with those from the

factor shares approach, I highlight the limitations of the latter method in analyzing

the effects of productivity evolution.

[Preprint] [Supplemental Appendix] [Versions Repo (arXiv)] 

In Search of (Factor-Biased) Learning by Exporting 

Joint with Joonkyo Hong

Under Review

This study examines whether exporting enhances efficiency, with gains favoring specific production inputs. We propose a production function model within a dynamic exporting and investment framework, capturing factor-biased technical changes. Using Kalman filtering to isolate Hicks-neutral productivity from measurement error and applying propensity score matching to address endogeneity from self-selection into exporting, we analyze Colombia’s manufacturing sectors from 1981 to 1991. Results show that past exporting raises Hicks-neutral productivity by 8% and unskilled labor-augmenting efficiency by 4%, while reducing skilled labor-augmenting productivity by 3%. Additionally, new exporters achieve a 20% increase in Hicks-neutral and unskilled labor-augmenting productivity within four years. 

[Preprint] [Versions Repo (arXiv)]