Bhattacharya, Dhritiman; Guner, Nezih; Ventura, Gustavo - Barcelona Graduate School of Economics (Barcelona GSE) - 2012
We develop a span-of-control model where managerial skills are endogenous and the outcome of investments over the life cycle of managers. We calibrate this model to U.S. plant-size data to quantify the effects of distortions that are correlated with the size of production units, and how these...