We find very fast convergence in productivity for the 99 3-digit European industries over the 1985-1998 period. According to our estimates half of any productivity gap is closed on average in 10 years. The speed of convergence is much higher than obtained previously in the literature....

This paper analyses the relationship between corporate taxation, firm age and debt. We adapt a standard model of capital structure choice under corporate taxation, focusing on the financing and investment decisions a firm is typically faced with. Our model suggests that the debt ratio is...