Misallocation in Firm Production: A Nonparametric Analysis Using Procurement Lotteries

∗We thank our team of outstanding, dedicated research assistants, as well as David Baqaee, Mark Bils, Richard Blundell, Kirill Borusyak, Arnaud Costinot, Pete Klenow, Jeremy Majerovitz, Matt Masten, Virgiliu Midrigan, Emi Nakamura, Karthik Narayan, Whitney Newey, Michael Peters, Richard Rogerson, Cian Ruane, Jesse Shapiro, John Sturm, Alex Torgovitsky, Ivan Werning, and numerous seminar participants for helpful comments. We are grateful to the Centro de Estudios Fiscales and the Departamento de Control of the Ecuadorian Tax Authority for outstanding collaboration and to Innovations for Poverty Action (IPA), International Growth Centre (IGC) and the Stanford Institute for Innovation in Development Economies (SEED) for generous research support. This paper has also benefited from funding from CEPR and UK Department for International Development (DFID) (under the Private Enterprise Development in Low-Income Countries program, reference MRG004 3834), the European Research Council (grant reference 758984), and the Swiss National Science Foundation (grant 100018 192588). The views expressed are not necessarily those of CEPR, DFID, ERC, SNF, or the National Bureau of Economic Research.

• May 31, 2023