practices of others. That some firms converge relatively slowly to the productivity frontier suggests the existence of factors … that cause them to underinvest in their productivity. In this paper we explore how far higher rates of corporate taxation … affect firm productivity convergence by reducing the after tax returns to productivity enhancing investments for small firms …

Why do cities differ so much in productivity? We document that most of the measured dispersion in productivity across … US cities is spurious and reflects granularity bias: idiosyncratic heterogeneity in plant-level productivity and size …