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We analyze the causal impact of the industrial policy structure on the formation of zombie firms, using a rich data set of manufacturing firms in China between 1998 and 2007. We find that selective industrial policy schemes increase zombie shares in skill intensive sectors, because as subsidized...
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Using Indonesian manufacturing census data (1991–2001), this paper rejects the hypothesis that the East Asian crisis unequivocally improved the reallocative process. The correlation between productivity and employment growth did not strengthen, and the crisis induced the exit of relatively...
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-entry learning and can be directed to analyze Bayesian rational or biased entrepreneurs. The model suggests that, to outside … whose biases cause them to perform the worst post-entry will be most likely to enter, that pre-entry learning induces a … performance may also be the result of heterogeneity in the length and quality of pre-entry learning during which an opportunity is …
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This paper studies aggregate dynamics in a cobweb model where learning takes place through a selection mechanism, by …
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