Efficient Reallocation and Productivity during Commodity Price Cycles
| dc.contributor.advisor | Saffie, Felipe | en_US |
| dc.contributor.author | Heresi, Rodrigo | en_US |
| dc.contributor.department | Economics | en_US |
| dc.contributor.publisher | Digital Repository at the University of Maryland | en_US |
| dc.contributor.publisher | University of Maryland (College Park, Md.) | en_US |
| dc.date.accessioned | 2019-09-26T05:31:09Z | |
| dc.date.available | 2019-09-26T05:31:09Z | |
| dc.date.issued | 2019 | en_US |
| dc.description.abstract | This paper investigates how low-frequency commodity price fluctuations trigger a reallocation process that endogenously generates a decline in manufacturing productivity. I build a model in which firms with heterogeneous productivity decide between two technologies with different capital intensities and choose whether to become exporters. During a commodity boom, exporters lose market share due to exchange rate appreciation. Moreover, a commodity boom increases the relative cost of capital, which is used intensively in resource production, leading to additional reallocation within manufacturing from more capital intensive to less capital-intensive manufacturing firms. I calibrate the model to the Chilean economy and show that it can match the relevant micro and macro moments. When fed with a realistic commodity price cycle, the baseline model generates about half of the productivity decline observed in the data, a figure that is two times larger than in a counterfactual economy with no technology decision. | en_US |
| dc.identifier | https://doi.org/10.13016/zdsj-d87z | |
| dc.identifier.uri | http://hdl.handle.net/1903/24926 | |
| dc.language.iso | en | en_US |
| dc.subject.pqcontrolled | Economics | en_US |
| dc.title | Efficient Reallocation and Productivity during Commodity Price Cycles | en_US |
| dc.type | Dissertation | en_US |
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