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This paper studies the interaction between entry barriers and idiosyncratic distortions in the context of a standard model of firm dynamics. It derives a strategy to infer entry barriers based on the combination of cross-country data on average firm size, cross-country estimates of idiosyncratic...
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decisions highly contingent on firm characteristics and past performance, complicating the identification of the privatization … specification (including its random-growth variant). The paper further finds that the privatization effects are significantly larger …
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