论文题目：Input-Output Networks and Misallocation
This paper develops a comparative framework for studying the macroeconomic costs of resource misallocation. The framework enables the assessment of the conditions under which the existing estimates in the misallocation literature, which are largely based on a value-added production structure and ignore inter-sectoral linkages, provide an unbiased estimate of a misallocation costs in relation to a more general setting, in which production of gross output relies upon input-output linkages across sectors. We show that in the absence of intermediate input distortions, the two approaches are isomorphic and will yield the same estimates of firms’ productivity and underlying distortions. When firm specific intermediate input distortions are present, however, the value-added model is incorrectly specified and will generally bias inference of firms’ productivity and distortions. Using Chinese and Indian manufacturing enterprise data, estimation based on the value-added and gross output models yields similar TFP gains from removing distortions for China, while the estimated TFP gain is significantly larger for India when the output model is used.