Corrigendum to Capital Investment in "Assortative Matching with Large Firms"

THIS DOCUMENT CORRECTS AN ERROR in Eeckhout and Kircher (2018) in the sign of an underived condition for positive assortative matching (PAM thereafter) within those extensions that allows for generic capital investment: It occurs in the applications of the main theory to The skill premium with generic capital investment and The misallocation debate; see page 104. This note provides the correct condition, proves it, and adjusts the accompanying example.

Comment Authors: 
Eeckhout, Jan - UPF Barcelona, ICREA-GSE-CREi
Kircher, Philipp - European University Institute
Lafuente, Cristina - University of Edinburgh
Macci, Gabriele - European University Institute
Online Corrigendum
File Upload: 
Comment Authors: 
Eeckhout, Jan, Philipp Kircher, Cristina Lafuente, and Gabriele Macci