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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 employerExpand
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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 differentExpand
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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 particularExpand
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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 aExpand
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Stock markets and development
This paper asks if financial development (especially stock-market development) affects the level and/or the growth rate of economic activity. It finds a substantial effect on both. Current wisdomExpand
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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 toExpand
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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 areExpand
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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 theExpand
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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 whetherExpand
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"Learning by Doing and the Choice of Technology."
This paper explores a one-agent Bayesian model of learning by doing and technological choice. Expand
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