Aghion, Philippe; Bergeaud, Antonin; Van Reenen, John - National Bureau of Economic Research - 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 … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …