If banks face asymmetric information about loan quality, endogenous borrowing constraints which restrict the size of new firms may emerge in equilibrium. High quality firms reduce financing costs by starting off small and increasing their size over time.

Entrepreneurship, as reflected in industry turnover rates, is a central force behind output and productivity growth. However, cross country comparisons suggest that turnover rates are remarkably independent of barriers to business: Singapore, one of the most entry-friendly countries in the...

We consider a partially integrated industry and examine the effects of contracts with a right of first refusal, whereby the vertically integrated firm has the option to match a quote from an independent supplier to supply an independent downstream firm.