This paper explores the role of public debt and fiscal deficits on factor productivity in an economy with credit market frictions and heterogeneous firms. When credit market conditions are sufficiently weak, low interest rates permit the government to run Ponzi schemes so that permanent primary deficits can be sustained. For small enough deficit ratios, the model has two steady states of which ...

This thesis consists of two self-contained empirical essays. Essay I investigates the impact of labor subsidies on TFP, and profit per employee is included as a second outcome. Coarsened exact matching (CEM) is performed on the key variables. After matching, a difference-indifference (DID) model is applied. The study shows that firms employing workers with wage subsidies experience negative and...

this paper is a survey of recent contributions to and developments in the relationship between efficiency and productivity via the production function. the objective is to provide a brief discussion on data and on the methods of measuring efficiency and productivity. first, we introduce the reader to the measurement of partial and total factor productivity in the context of static and firm - sp...