Bhattacharya, Dhritman; Guner, Nezih; Ventura, Gustavo - In: Review of Economic Dynamics 16 (2013) 1, pp. 11-25
We develop a span-of-control model where managerial skills are endogenous and the outcome of investments over the life … correlated with the size of production units, and how these effects are amplified by managerial investments. We find a … quantitatively important role for managerial investments. Distortions that consist of a tax rate of 20% on the top 50% managers …