4.3. How important are organizational decisions in determining a firm’s productivity? | Lorenzo Caliendo, Giordano Mion, Luca David Opromolla, Esteban Rossi-Hansberg

Measuring and understanding differences and variations in firm, and therefore country, productivity is a difficult—and important—task. Economists throughout the world have documented large and persistent differences in measured productivity across firms: Syverson (2004), looking at the variation in revenue-based productivity across US plants within four-digit SIC industries, finds that the plant at the 90th percentile of the productivity distribution makes almost twice as much output, with the same measured inputs, as the 10th percentile plant.