Pellegrino, Bruno; Zheng, Geoffery - 2023
distortions and estimate the gross domestic product (GDP) loss induced by distortionary red tape. Our estimates are based on a … dynamic general equilibrium model with heterogeneous firms whose capital investment decisions are distorted by red tape. We … find that the aggregate cost of red tape varies widely across the countries in our dataset, with an average cost of 0.8% of …