Financial Frictions and Total Factor Productivity: Accounting for the Real Effects of Financial Crises

Financial crises in emerging economies are accompanied by a large fall in total factor productivity. We explore the role of financial frictions in exacerbating the misallocation of resources and explaining this drop in TFP. We build a two-sector model of a small open economy with a working capital c...

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Bibliographic details
Volume: 15
Main Author: Pratap, Sangeeta
Urrutia, Carlos
Format: Journal Article
Language: English
Place of publication: Elsevier for the Society for Economic Dynamics 2012
published in: Review of Economic Dynamics Vol. 15; no. 3; pp. 336 - 358
Data of publication: 2012
Series: Review of Economic Dynamics
Online Access: available in Bonn?
Database: RePEc
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