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Entry Barriers, Idiosyncratic Distortions, and the Firm-Size Distribution (Inglés)

This paper studies the interaction between barriers to firm entry and distortions to allocative efficiency in a standard model of firm dynamics. It derives a strategy to infer entry barriers based on cross-country differences in the firm size distribution, cross-country estimates of idiosyncratic distortions, and equilibrium conditions of the model. The strategy yields entry barriers that are well captured by regulation-based indicators in advanced...
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