García-Santana, Manuel; Pijoan-Mas, Josep - In: Journal of Monetary Economics 66 (2014) C, pp. 193-209
The Small Scale Reservation Laws (SSRL) in India are a unique case of firm-level size restrictions. We quantify their aggregate productivity costs by use of a span-of-control model extended into a multisector setting. The reallocation of top managers away from the distorted sector partly offsets...