Economics seminars - Manuel GARCIA-SANTANA

"Growing like Spain: 1995-2007"

Dear all,

You are cordially invited to the following seminar co-organized by CERPE, CRED and CEREFIM at the Department of Economics in Namur.

Hope to see you all,

"Growing like Spain: 1995-2007"

Speaker:  Manuel Garcia-Santana

(Pompeu Fabra)

Date and time: Tuesday, March 12, 2019 at 4pm

Room 401, Rempart de la Vierge 8, Namur

 

Abstract

 Measured TFP fell at an annual rate of 0.7% in Spain during the boom yearsof 1995 to 2007. Using administrative data from the quasi-universe of firms forall sectors we show that deterioration in the allocative efficiency of productive fac-tors across firms was at the root of the low TFP growth in Spain. Cross-industryvariation reveals that the increase in misallocation was more severe in those sec-tors where connections with public officials are more important for business success,which represents novel evidence on the potential macroeconomic costs of crony cap-italism. We write and estimate a simple model of cronyism in which heterogeneousfirms invest in political connections. The model is consistent with the facts that (a)there is more dispersion in firm productivity in those sectors more prone to cronyismand (b) a general decline in the quality of institutions generates a larger increase inthe dispersion of firm productivities in those sectors more prone to cronyism. Ourquantitative exercise concludes that the institutional decline over this period costed1.9% growth in TFP per year.

 

More information: http://defipp.unamur.be/events/economics-seminars-manuel-gracia-santana

Other seminars: http://defipp.unamur.be/seminars

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