Bazzi, Samuel; Muendler, Marc-Andreas; Oliveira, Raquel F. - National Bureau of Economic Research - 2023
growth of promising young firms. A model of liquidity-constrained entrepreneurs suggests that the easing of credit … constraints can induce more entry of firms with greater long-run growth potential than the easing of conventional entry barriers … would bring about. We explore this growth mechanism using a large-scale program to expand the supply of credit to small and …