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...

I study how entry barriers affect productivity by exploiting the collapse of the US sugar cartel as a natural experiment. Using difference-in-difference estimations, I find the eradication of entry barriers caused a 35% increase in productivity within the treatment group.

This study addresses the apparent puzzle that China achieved spectacular economic performance despite weak institutions. Using a World Bank survey of 1566 manufacturing enterprises in 18 Chinese cities, we investigated whether property rights protection mattered for enterprise performance. We...

Entrepreneurship, as reflected in industry turnover rates, is a central force behind output and productivity growth. However, cross country comparisons suggest that turnover rates are remarkably independent of barriers to business: Singapore, one of the most entry-friendly countries in the...