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This is a revised version of a paper originally prepared for the UNU-WIDER conference on Fragile States–Fragile Groups, directed by Mark McGillivray and Wim Naudé. The conference was jointly organized by UNU-WIDER and UN-DESA, with a financial contribution from the Finnish Ministry for Foreign Affairs. UNU-WIDER gratefully acknowledges the contributions to(More)
The micro evidence indicates that small …rms grow faster than big …rms. I argue that this relationship between the expected growth rate of a …rm and its size may provide a microfoundation for the well known high degree of persistence of shocks to aggregate output. The logic goes as follows. Almost any shock tends to temporarily alter …rms' incentive to(More)
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