Identifying the aggregate productivity effects of entry and size restrictions: an empirical analysis of license reform in India

Chari, A V (2011) Identifying the aggregate productivity effects of entry and size restrictions: an empirical analysis of license reform in India. American Economic Journal: Economic Policy, 3 (2). pp. 66-96. ISSN 1945-7731

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Abstract

Distortions in the allocation of resources between heterogeneous producers have the potential to generate large reductions in aggregate productivity, a point that has been stressed by recent studies. There is, however, little direct empirical evidence from actual policy experiments on the magnitude of these effects. This paper proposes a simple methodology that empirically identifies the separate effects of entry and size restrictions on aggregate productivity, and uses it to analyse the impact of a policy reform in India. (JEL L11, L24, O14, O47)

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HB Economic theory. Demography
Depositing User: Catrina Hey
Date Deposited: 07 Oct 2013 11:59
Last Modified: 07 Oct 2013 11:59
URI: http://sro.sussex.ac.uk/id/eprint/45171
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