The (mis)allocation of Capital
Published By: BREAD on eSS | Published Date: January, 08 , 2003Is capital allocated so that its marginal product is equated to the market
interest rate? Is the marginal product of capital equalized across its alternative
uses. This paper attempts to answer both of these questions using data from
India, and concludes that both these standard properties fail by a wide margin. [BREAD Working Paper No. 006] URL: [http://ipl.econ.duke.edu/bread/papers/working/006.pdf]
Author(s): Esther Duflo, Kaivan Munshi, Abhijit V. Banerjee | Posted on: Mar 08, 2011 | Views(933) | Download (126)