Using restricted firm-level census data, I structurally estimate the model through the simulated method of moments. Through counterfactual analysis, I find that within-firm skill complementarity accounts for 18% of cross-city productivity gaps in China. The major disadvantage of Monte Carlo simulation is speed, as the accuracy of the method improves as the square root of the number of independent samples generated in a simulation. However, because of sample independence, the method is highly parallel and is thus ideally suited for implementation with scalable parallel-processing architectures.
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