Does national market size matter for industrial structure? This has been suggested by theoretical work on quot;home marketquot;effects, as in Krugman (1980, 1995). In this paper, I show that what previously was regarded as an assumption of convenience transport costs only for the differentiated...

We show that supply-side financial shocks have a large impact on the investment decisions of firms. We do this by developing a new methodology to separate firms' credit shocks from loan supply shocks, using a vast sample of matched bank-firm lending data. We decompose loan movements in Japan for...