Aghion, Philippe; Bergeaud, Antonin; Van Reenen, John - 2021
sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …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 …