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Selection and the evolution of industry
Proposes a theory that explains why smaller firms have higher and more variable growth rates than larger firms. Relying on employer heterogeneity and market selection to generate patterns of employer
An Estimated Model of Entrepreneurial Choice under Liquidity Constraints
Is the capital function distinct from the entrepreneurial function in modern economies? Or does a person have to be wealthy before he or she can start a business? Knight and Schumpeter held different
Job Matching and the Theory of Turnover
A long-run equilibrium theory of turnover is presented and is shown to explain the important regularities that have been observed by empirical investigators. A worker's productivity in a particular
Financial Development, Growth, and the Distribution of Income
A paradigm is presented in which both the extent of financial intermediation and the rate of economic growth are endogenously determined. Financial intermediation promotes growth because it allows a
This paper reviews five striking facts about inequality across countries. As Kuznets (1955) famously first documented, inequality first rises and then falls with income. More unequal societies are
The Life Cycle of a Competitive Industry
Firm numbers first rise, then later fall, as an industry evolves. This nonmonotonicity is explained using a competitive model in which innovation opportunities fuel entry and relative failure to
Firm-specific Capital and Turnover
This is a model of permanent job separations when there are endogenous firm-specific human capital and intensity of on-the-job search. The result is a combination of human-capital theory with the
"Learning by Doing and the Choice of Technology."
A one-agent Bayesian model of learning by doing and technological choice is explored and it is found that a human-capital- rich agent may find it optimal to avoid any switching of technologies, and therefore to experience no long-run growth.
Truthful Disclosure of Information
This article is about disclosure of quality. The question that it seeks to answer is: Does the free market offer enough incentive for business to disclose? The article concludes that whether