, thus increasing productivity, but worsens incumbents' scale economies, thus decreasing productivity. I outline a theory …I analyze two opposing effects of firm dynamics on productivity over the business cycle. Consider net exit, on the one … hand it reallocates resources to incumbents whose productivity improves through scale economies, on the other hand it …

growth is also a central concern to both the practice and theory of business strategy. Despite both its theoretical and … robust theory of firm growth. This paper attempts to address this gap in our empirical knowledge of firm growth using a …

.S industries. Our econometric framework exploits restrictions from dynamic theory and information from financial markets to …