Investigation of Removing Idiosyncratic Price Distortions On Manufacturing TFP in Iran

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Motavasseli, Ali | 2009

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 39725 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Nili, Farhad
Abstract:
Government intervention in markets may go beyond the market regulation. Interventions may cause some idiosyncratic price distortions. It means the relative prices of factors to become different among firms. Therefore, micro conditions for firms will be changed. These will result in misallocation of factor production between firms and change in manufacturing TFP. According to data from about 14000 medium and small industrial firms in Iran, removing misallocation of production factors (capital and energy) and output idiosyncratic distortions between industrial firms would result in 115 percent increase in manufacturing TFP.
Keywords:
Total Factor Productivity (TFP) ; Manufacturing Firms ; Idiosyncratic Distortion ; Relative Price

No TOC