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American Economic Journal: Economic Policy: Vol. 3 No. 2 (May 2011)
AEJ: Policy Volume. 3, Issue 2 | 
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AEJ: Policy Forthcoming Articles
Identifying the Aggregate Productivity Effects of Entry and Size Restrictions: An Empirical Analysis of License Reform in India
Article Citation
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): 66-96.
DOI: 10.1257/pol.3.2.66
DOI: 10.1257/pol.3.2.66
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)
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Authors
Chari, A. V. (Cornell U)
JEL Classifications
L11: Production, Pricing, and Market Structure; Size Distribution of Firms
L24: Contracting Out; Joint Ventures; Technology Licensing
O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
O47: Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
L24: Contracting Out; Joint Ventures; Technology Licensing
O14: Industrialization; Manufacturing and Service Industries; Choice of Technology
O47: Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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