European Patent Office; (iv) the national registry of local politicians; and (v) detailed data on local elections in Italy. We …

by theory, these effects are weaker for larger firms, which can more easily raise funds outside of the local area …

presents a theory of firm dynamics that simultaneously rationalizes the basic facts on firm growth, exit, and size … distributions. The theory emphasizes the accumulation of industry specific human capital in response to industry specific … productivity shocks. The theory implies that firm growth and exit rates should decline faster with size, and the size distribution …