Predation, protection, and productivity : a firm-level perspective
Besley, Timothy
Mueller, Hannes (Institut d'Anàlisi Econòmica)

Date:	2017
Abstract:	This paper studies the consequences of predation when firms deploy guard labor as a means of protecting themselves. We build a simple model and combine it with data for 144 countries from the World Bank enterprise surveys which ask about firm- level experiences with predation and spending on protection. We use the model to estimate the output loss caused by the misallocation of labor across firms and from production to protection. The loss due to protection e¤ort is substantial and paterns of state protection at the micro level can have a profound impact on aggregate output losses. Various extensions are discussed.
Grants:	Ministerio de Economía y Competitividad ECO2015-66883-P
Note:	Altres ajuts: SEV-2015-0563
Rights:	Tots els drets reservats.
Language:	Anglès
Document:	Article ; recerca ; Versió acceptada per publicar
Published in:	American Economic Journal : Macroeconomics, August 2017, ISSN 1945-7707

Adreça alternativa: http://eprints.lse.ac.uk/84144/

Postprint 51 p, 570.3 KB

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