Aghion, Philippe; Bergeaud, Antonin; Van Reenen, John - 2021
Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … endogenous growth model with size-contingent regulations. We apply this to population administrative firm panel data from France ….4% lower due to the regulation, a 2.2% consumption equivalent welfare loss. Four-fifths of this loss is due to lower innovation …
