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

journal contribution
posted on 2023-06-08, 15:05 authored by Amalavoyal ChariAmalavoyal Chari
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 Policy

ISSN

1945-7731

Publisher

American Economic Association

Issue

2

Volume

3

Page range

66-96

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2013-10-07

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