Macro and Micro Dynamics of Productivity: From Devilish Details to InsightsG. Jacob Blackwood, Lucia S. Foster, Cheryl A. Grim, John Haltiwanger, and Zoltan Wolf ,
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American Economic Journal: Macroeconomics
Firm-level, revenue-based productivity measures are ubiquitous in studies of firm dynamics and aggregate outcomes. One common measure is increasingly interpreted as reflecting "distortions" since in distortions' absence, equalization of marginal revenue products should yield no dispersion in this measure.