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Identifying the aggregate productivity effects of entry and size restrictions: an empirical analysis of license reform in India
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)
History
Publication status
- Published
Journal
American Economic Journal: Economic PolicyISSN
1945-7731Publisher
American Economic AssociationExternal DOI
Issue
2Volume
3Page range
66-96Department affiliated with
- Economics Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2013-10-07Usage metrics
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