AE Gains from Closing SOE-POE TFPR Gap with Lognormal Assumptions
Notes: The first row of this table plots our estimates of the average SOE-POE TFPR gap in the time-period given by the corresponding column. The second and third rows show TFPR dispersion in the data and in our counterfactual. The fourth and fifth columns show baseline allocative efficiency as well as allocative efficiency following our counterfactual reform. The last row shows the counterfactual TFP gains from this reform.
|SOE-POE TFPR Gap||-0.131||-0.386||-0.350||-0.262|
|Counterfactual TFP Gains||3.18%||9.87%||9.57%||6.01%|