We model entry by entrepreneurs into new markets in developing economies with regulatory barriers in the form of … licence fees and bureaucratic delay. Because laissez faire leads to 'excessive' entry, a licence fee can increase welfare by … discouraging entry. However, in the presence of a licence fee, bureaucratic delay creates a strategic opportunity, which can result …

This paper analyzes the effect of labor and product market regulation in a dynamic stochastic equilibrium with search … frictions. Modeling multiple-worker firms allows us to distinguish between the exit-and-entry (extensive) margin, and the hiring …-and-firing (intensive) margin. We characterize analytically how both margins depend on regulation before we calibrate the model to the US …

be expected to have a positive impact on productivity, thereby making entry (or contestability of markets) desirable …. Traditional research in the context of entry has explored the strategic reactions of incumbent firms when threatened by the … possibility of entry. However, following De Soto (1989), there has been increasing emphasis on regulatory and institutional …

This paper analyzes the effect of Product Market Regulation (PMR) on unemployment in a search model with heterogeneous … rate of unemployment. We distinguish between PMR related to entry costs and PMR that generates recurrent fixed costs. We … find that: (i) higher entry costs raise the rate of unemployment mainly through our novel selection effect, (ii) higher …

Are product market and entry regulation key sources of low employment growth in many European countries? We investigate … region specific variation in boards' approval decisions. We show that stronger deterrence of entry by the boards, and the …