Poschke, Markus - Institute for the Study of Labor (IZA) - 2007
endogenous growth through selection and imitation is developed. It is consistent with recent evidence on firm dynamics and on the … importance of reallocation for productivity growth. In the model, growth is driven by selection among heterogeneous incumbent … continuing firms raises growth by promoting selection. Also charging them to exiting firms is akin to an exit tax, hampers …