We analyze how the presence of distribution services affects an economy's long-run growth. We show that in an endogenous growth model, increases in the unit distribution requirement lower the economy''s balanced growth rate by reducing the proportion of aggregate employment allocated to the...

We analyze how the presence of distribution services affects an economy's long-run growth. We show that in an endogenous growth model, increases in the unit distribution requirement lower the economy''s balanced growth rate by reducing the proportion of aggregate employment allocated to the...