Barseghyan, Levon; DiCecio, Riccardo - Federal Reserve Bank of St. Louis - 2009
to greater misallocation of productive factors and lower TFP and output. In the model, countries with entry costs in the … operation decisions by firms and calibrate it to match the U.S. distribution of firms by age and size. Higher entry costs lead … lowest decile of the distribution have 2.32 times higher TFP (3.43 in the data) than countries in the highest decile. As in …