05078oam 22012734 450 991015501420332120250426110040.09781475554069147555406097814755541201475554125(CKB)3710000000973023(MiAaPQ)EBC4867561(Au-PeEL)EBL4867561(CaPaEBR)ebr11391085(CaONFJC)MIL974477(OCoLC)965718084(IMF)WPIEA2016220WPIEA2016220(EXLCZ)99371000000097302320020129d2016 uf 0engurcnu||||||||rdacontentrdamediardacarrierA Tale of Two Sectors : Why is Misallocation Higher in Services than in Manufacturing? /Daniel Dias, Christine Richmond, Carlos Robalo MarquesWashington, D.C. :International Monetary Fund,2016.1 online resource (50 pages) illustrations (some color), tablesIMF Working Papers9781475553796 147555379X Includes bibliographical references.Recent empirical studies document that the level of resource misallocation in the service sector is significantly higher than in the manufacturing sector. We quantify the importance of this difference and study its sources. Conservative estimates for Portugal (2008) show that closing this gap, by reducing misallocation in the service sector to manufacturing levels, would boost aggregate gross output by around 12 percent and aggregate value added by around 31 percent. Differences in the effect and size of productivity shocks explain most of the gap in misallocation between manufacturing and services, while the remainder is explained by differences in firm productivity and age distribution. We interpret these results as stemming mainly from higher output price rigidity, greater labor adjustment costs and more informality in the service sector.IMF Working Papers; Working Paper ;No. 2016/220Service industriesPortugalManufacturing industriesPortugalMacroeconomicsimfIndustries: ManufacturingimfIndustries: ServiceimfProduction and Operations ManagementimfProductionimfCostimfCapital and Total Factor ProductivityimfCapacityimfMacroeconomic Analyses of Economic DevelopmentimfOne, Two, and Multisector Growth ModelsimfMeasurement of Economic GrowthimfAggregate ProductivityimfCross-Country Output ConvergenceimfIndustry Studies: Services: GeneralimfMacroeconomics: ProductionimfIndustry Studies: Manufacturing: GeneralimfLabor Economics: GeneralimfManufacturing industriesimfLabourimfincome economicsimfServices sectorimfTotal factor productivityimfProductivityimfManufacturingimfLaborimfEconomic sectorsimfService industriesimfIndustrial productivityimfLabor economicsimfIncome economicsimfPortugalimfService industriesManufacturing industriesMacroeconomicsIndustries: ManufacturingIndustries: ServiceProduction and Operations ManagementProductionCostCapital and Total Factor ProductivityCapacityMacroeconomic Analyses of Economic DevelopmentOne, Two, and Multisector Growth ModelsMeasurement of Economic GrowthAggregate ProductivityCross-Country Output ConvergenceIndustry Studies: Services: GeneralMacroeconomics: ProductionIndustry Studies: Manufacturing: GeneralLabor Economics: GeneralManufacturing industriesLabourincome economicsServices sectorTotal factor productivityProductivityManufacturingLaborEconomic sectorsService industriesIndustrial productivityLabor economicsIncome economics338.4Dias Daniel61147Richmond Christine1451131Robalo Marques Carlos1451132DcWaIMFBOOK9910155014203321A Tale of Two Sectors3651004UNINA