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Abhijit V. Banerjee, Esther Duflo, Kaivan Munshi, The (Mis)Allocation of Capital, Journal of the European Economic Association, Volume 1, Issue 2-3, 1 May 2003, Pages 484–494, https://doi.org/10.1162/154247603322391125
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Abstract
Is capital allocated so that its marginal product is equated to the market interest rate? Is the marginal product of capital equalized across its alternative uses? This paper attempts to answer both of these questions using data from India, and concludes that both these standard properties fail by a wide margin.
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© 2003 by the European Economic Association
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