Using data drawn from the universe of firms to avoid sample censoring problems, this paper finds financial constraints to be binding on mid-sized firms and those in construction and services sectors only. Growth of the majority of firms is unaffected by financial burdens. Firm size distribution...

This paper analyzes the firm size distribution of Micro, Small and Medium Enterprises (MSME) using a nationally representative survey of unregistered firms in India that were collected as a part of the 3rd MSME Census in 2002. We find that the firm size distribution for younger firms is skewed...

Economies have markedly different firm size distributions. At the same time, firms of different size grow differently after identical financial- and product-market liberalization reforms. Thus, identical reforms can produce different growth outcomes across countries. This result is reached after...

In France, firms with 50 employees or more face substantially more regulation than firms with less than 50. As a result, the size distribution of firms is visibly distorted: there are many firms with exactly 49 employees. We model the regulation as the combination of a sunk cost that must be...

In France, firms with 50 employees or more face substantially more regulation than firms with less than 50. As a result, the size distribution of firms is visibly distorted: there are many firms with exactly 49 employees. We model the regulation as the combination of a sunk cost that must be...

We propose a two-period matching model of firms and managers to argue that managerial career concerns may not guarantee assortative matching in the market for reputation. In the model, firms compete for managerial talent, and managers are concerned about their reputations. The market updates...

The Pareto distribution is known for its wide range of applications, including the distribution of firm sizes. Exhaustive databases on firm sizes showed deviations from the Pareto firm size distribution for the smallest and largest firm sizes. Therefore, stochastic models of firm dynamics...

We show that misallocation across firms amplifies industrial pollution by distorting the firm size distribution in China. The empirical evidence suggests that larger firms tend to use clean technology but face higher distortions. In a heterogeneous firm model with an endogenous choice of...