Among the phenomena in economics that are not yet well-understood is the fat-tailed (power-law) distribution of firm sizes in the worldś economies. Different mechanisms suggested in the literature to explain this distribution of firm sizes are discussed in the present paper. The paper uses the...

We show that misallocation across firms amplifies industrial pollution by distorting the firm size distribution in China. The empirical evidence suggests that larger firms tend to use clean technology but face higher distortions. In a heterogeneous firm model with an endogenous choice of...

It is commonly remarked that Small and Medium-Sized Enterprises (SMEs) form the backbone of many different economies around the world, but the extent to which such national trends form part of a quantifiable larger global pattern has rarely, if ever, been examined. It is not unusual to hear...