• Corpus ID: 16375606

Where are the Real Bottlenecks? A Lagrangian Approach to Identifying Constraints on Growth from Subjective Survey Data

@article{Carlin2006WhereAT,
  title={Where are the Real Bottlenecks? A Lagrangian Approach to Identifying Constraints on Growth from Subjective Survey Data},
  author={Wendy Carlin and Mark E. Schaffer and Paul Seabright},
  journal={Public Economics: Publicly Provided Goods eJournal},
  year={2006}
}
We use firm-level survey data from over 20,000 firms in about 60 countries to identify constraints on the growth of firms. We develop a Lagrangian approach and measure the cost of different constraints by using managers' answers to survey questions on what aspects of their external environment inhibit the operation and growth of their firm. Our model reveals that, contrary to the common practice in much of the existing literature on this question, the importance of an obstacle to growth is not… 

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