We develop a measure of static misallocation that separates uncertainty from misallocation generated by tax-like distortions. In the Finnish firm-level data, uncertainty accounts for the majority of ex post misallocation and explains a strong decreasing age-dependent trend in it. To understand...

We develop a general equilibrium model in which heterogeneous entrepreneurs produce output in the presence of financing constraints. We model granular uncertainty as the shocks that affect the uncertainty in future idiosyncratic productivity without changing the cross-sectional dispersion of...

Previous studies have established that young innovative companies (YICs), characterized by high levels of in-house research and development (R&D), exhibit a pronounced growth premium at the upper end of the conditional growth distribution and are therefore of particular interest to policymakers....

This study relies on the dual model of passion to explore the direct and conditional effect of passion on firm growth. The study proposed persistence and environmental uncertainty as pathways through which passion influences firm growth. The model of firm growth was tested on a sample of 381...