Larger cities typically give rise to two opposite effects: tougher competition among firms and higher production costs. Using an urban model with substitutability of production factors and pro-competitive effects, I study the response of the market outcome to city size, land-use regulations, and...

"The United States has led other nations in creating a legal, economic, social, and political ecosystem that has proven extraordinarily effective at fostering entrepreneurship. Evidence of this country's status as a powerful launchpad for entrepreneurship runs throughout its history. It is not a...

"Does finance follow the real economy, or the other way around? This paper unites the two competing schools of thought in a general equilibrium framework. Our key result is that there are threshold effects defined by a set of deep institutional parameters (cost of financial intermediation,...