's (1982) model of learning in a setting where each firm gradually learns about its own productivity, and each occasionally …

aggregate output and productivity and highlight indirect general equilibrium effects. To do so, we build a model of … cleansing effect reinforces the direct effect by enhancing the aggregate productivity. However, the number of firms in operation … decreases in equilibrium, and this, in turn, depresses the aggregate productivity. …

-level productivity, which allows us to capture the skewed firm size distribution seen in the Business Dynamics Statistics (BDS). We … compare the welfare and aggregate productivity implications of our non-Gaussian process to those of a standard AR(1) process …. While credit subsidies resolve misallocation of resources and enhance aggregate productivity, increased factor prices, in …