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 …

) promotion in India to address this question. For 60 years, SSI promotion in India focused on reserving certain products for …, productivity, and wages of dismantling India's SSI reservations. We exploit variation in the timing of de-reservation across …

. We calibrate the model to firm-level data from the U.S. and India. We show that the model is quantitatively consistent … quantitative analysis shows that the low efficiency of delegation in India can account for 5% of productivity and 15% of income … differences between the U.S. and India in steady state. We also show that such inefficient delegation possibilities reduce the …

ability to generate new growth options. This simple theory predicts that Tobin's q falls with age. Further, competition in the …

implies that when the productivity elasticity of distortions increases from 0.09 in the U.S. to 0.5 in India, aggregate output …