The Misallocation of Land and Other Factors of Production in India

This paper quantifies the misallocation of manufacturing output and factors of production between establishments across Indian districts during 1989-2010. It first distills a number of stylized facts about misallocation in India, and demonstrates the validity of misallocation metrics by connecting t...

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Main Authors:	Duranton, Gilles, Ghani, Ejaz, Goswami, Arti Grover, Kerr, William
Format:	Working Paper
Language:	en_US
Published:	World Bank Group, Washington, DC 2015
Subjects:	employment capital markets rights land reform economic growth villages accounting production politics valuation income buildings property rights gdp per capita information elasticity housing political economy welfare gross value effects incentives distribution urban land variables regression analyses inputs cities returns to scale wealth rents economic analysis trends development apartment influence total factor productivity fixed inputs rent constant returns to scale outputs construction econometrics labor productivity productivity landlord transfers increasing returns financial institutions markets organizations allocative efficiency economic policies labor housing market land development real estate finance efficiency taxes land use equity energy consumption deregulation productivity growth land transactions value added land market property right economic performance capital policies value urban infrastructure repair production functions credit rent controls macroeconomics urban areas household inefficiency consumers property measurement assets benchmark economic theory urban development economics production function private developers management insurance functional forms capital use taxation slums trade real estate markets gdp land theory bank loans extreme poverty land use regulations rural areas financial markets flexible functional forms supply banking zoning urban_land land transfer law building borrowing total output economic geography labour governments financial sector outcomes urban population energy usage labor regulations prices land supply development policy
Online Access:	http://hdl.handle.net/10986/21660

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spelling	okr-10986-216602021-04-23T14:04:03Z The Misallocation of Land and Other Factors of Production in India Duranton, Gilles Ghani, Ejaz Goswami, Arti Grover Kerr, William employment capital markets rights land reform economic growth villages accounting production politics valuation income buildings property rights gdp per capita information elasticity housing political economy welfare gross value effects incentives distribution urban land variables regression analyses inputs cities returns to scale wealth rents economic analysis trends development apartment influence total factor productivity fixed inputs rent constant returns to scale outputs construction econometrics labor productivity productivity landlord transfers increasing returns financial institutions markets organizations allocative efficiency economic policies labor housing market land development real estate finance efficiency taxes land use equity energy consumption deregulation productivity growth land transactions value added land market property right economic performance capital policies value urban infrastructure repair production functions credit rent controls macroeconomics urban areas household inefficiency consumers property measurement assets benchmark economic theory urban development economics production function private developers management insurance functional forms capital use taxation slums trade real estate markets gdp land theory bank loans extreme poverty land use regulations rural areas financial markets flexible functional forms supply banking zoning urban_land land transfer law building borrowing total output economic geography labour governments financial sector outcomes urban population energy usage labor regulations prices land supply development policy This paper quantifies the misallocation of manufacturing output and factors of production between establishments across Indian districts during 1989-2010. It first distills a number of stylized facts about misallocation in India, and demonstrates the validity of misallocation metrics by connecting them to regulatory changes in India that affected real property. With this background, the study next quantifies the implications and determinants of factor and output misallocation. Although more-productive establishments in India tend to produce more output, factors of production are grossly misallocated. A better allocation of output and factors of production is associated with greater output per worker. Misallocation of land plays a particularly important role in these challenges. 2015-03-31T17:22:57Z 2015-03-31T17:22:57Z 2015-03 Working Paper http://hdl.handle.net/10986/21660 en_US Policy Research Working Paper;No. 7221 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	employment capital markets rights land reform economic growth villages accounting production politics valuation income buildings property rights gdp per capita information elasticity housing political economy welfare gross value effects incentives distribution urban land variables regression analyses inputs cities returns to scale wealth rents economic analysis trends development apartment influence total factor productivity fixed inputs rent constant returns to scale outputs construction econometrics labor productivity productivity landlord transfers increasing returns financial institutions markets organizations allocative efficiency economic policies labor housing market land development real estate finance efficiency taxes land use equity energy consumption deregulation productivity growth land transactions value added land market property right economic performance capital policies value urban infrastructure repair production functions credit rent controls macroeconomics urban areas household inefficiency consumers property measurement assets benchmark economic theory urban development economics production function private developers management insurance functional forms capital use taxation slums trade real estate markets gdp land theory bank loans extreme poverty land use regulations rural areas financial markets flexible functional forms supply banking zoning urban_land land transfer law building borrowing total output economic geography labour governments financial sector outcomes urban population energy usage labor regulations prices land supply development policy
spellingShingle	employment capital markets rights land reform economic growth villages accounting production politics valuation income buildings property rights gdp per capita information elasticity housing political economy welfare gross value effects incentives distribution urban land variables regression analyses inputs cities returns to scale wealth rents economic analysis trends development apartment influence total factor productivity fixed inputs rent constant returns to scale outputs construction econometrics labor productivity productivity landlord transfers increasing returns financial institutions markets organizations allocative efficiency economic policies labor housing market land development real estate finance efficiency taxes land use equity energy consumption deregulation productivity growth land transactions value added land market property right economic performance capital policies value urban infrastructure repair production functions credit rent controls macroeconomics urban areas household inefficiency consumers property measurement assets benchmark economic theory urban development economics production function private developers management insurance functional forms capital use taxation slums trade real estate markets gdp land theory bank loans extreme poverty land use regulations rural areas financial markets flexible functional forms supply banking zoning urban_land land transfer law building borrowing total output economic geography labour governments financial sector outcomes urban population energy usage labor regulations prices land supply development policy Duranton, Gilles Ghani, Ejaz Goswami, Arti Grover Kerr, William The Misallocation of Land and Other Factors of Production in India
geographic_facet	South Asia India
relation	Policy Research Working Paper;No. 7221
description	This paper quantifies the misallocation of manufacturing output and factors of production between establishments across Indian districts during 1989-2010. It first distills a number of stylized facts about misallocation in India, and demonstrates the validity of misallocation metrics by connecting them to regulatory changes in India that affected real property. With this background, the study next quantifies the implications and determinants of factor and output misallocation. Although more-productive establishments in India tend to produce more output, factors of production are grossly misallocated. A better allocation of output and factors of production is associated with greater output per worker. Misallocation of land plays a particularly important role in these challenges.
format	Working Paper
author	Duranton, Gilles Ghani, Ejaz Goswami, Arti Grover Kerr, William
author_facet	Duranton, Gilles Ghani, Ejaz Goswami, Arti Grover Kerr, William
author_sort	Duranton, Gilles
title	The Misallocation of Land and Other Factors of Production in India
title_short	The Misallocation of Land and Other Factors of Production in India
title_full	The Misallocation of Land and Other Factors of Production in India
title_fullStr	The Misallocation of Land and Other Factors of Production in India
title_full_unstemmed	The Misallocation of Land and Other Factors of Production in India
title_sort	misallocation of land and other factors of production in india
publisher	World Bank Group, Washington, DC
publishDate	2015
url	http://hdl.handle.net/10986/21660
_version_	1764448907532697600

The Misallocation of Land and Other Factors of Production in India

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