propose a unifying theory to analyze the symptoms and the potential causes of this decline. We first highlight 10 pronounced … potential of growth theory for the analysis of factors behind declining business dynamism and the need for further investigation …

Empirical data show that firms tend to improve their ranking in the productivity distribution over time. A stickyprice … model with firm-level productivity growth fits this data and predicts that the optimal long-run inflation rate is positive … with firm-level productivity growth, and optimal inflation stabilization policies are standard. In a two-sector extension …

Suppose firms are subject to decreasing returns and permanent idiosyncratic productivity shocks. Suppose also firms can … productivity shocks tend to survive and others are forced to exit. This paper identifies assumptions about entry that guarantee a …