presents a theory of firm dynamics that simultaneously rationalizes the basic facts on firm growth, exit, and size … distributions. The theory emphasizes the accumulation of industry specific human capital in response to industry specific … productivity shocks. The theory implies that firm growth and exit rates should decline faster with size, and the size distribution …

times; and (v) pay higher spreads, even conditional on other firm characteristics. We present a theory of loan terms that … recession. Consistent with the theory, the increase in bank credit in 2020Q1 and 2020Q2 came almost entirely from drawdowns by …