The Small Scale Reservation Laws (SSRL) in India are a unique case of firm-level size restrictions. We quantify their aggregate productivity costs by use of a span-of-control model extended into a multisector setting. The reallocation of top managers away from the distorted sector partly offsets...

In this paper we quantify the effects of the Small Scale Reservation Laws in India on the aggregate productivity, aggregate output and welfare of the Indian economy. To this end, we extend the span-of-control model by Lucas (1978) into a multi-sector setting and embed it into the neo-classical...

In this paper we quantify the effects of the Small Scale Reservation Laws in India on the aggregate productivity, aggregate output and welfare of the Indian economy. To this end, we extend the span-of-control model by Lucas (1978) into a multi-sector setting and embed it into the neo-classical...

I construct a tractable model to investigate the impact of the presence of foreign firms in economies where there exist financial frictions. The cross-country implications of the model are consistent with two facts that I document using plant-level data: (i) foreign firms enter more in economies...

We investigate the role of transportation infrastructure in explaining resource misallocation and income in India. We extend the endogenous variable markups model by Atkeson and Burstein (2008) into a multi-region setting in which asymmetric states trade with each other. High transportation...

Distinguishing between the relative roles of skills and luck in the determination of wages is a main concern for economic policy. Variation in observed characteristics of workers and firms typically account for one third of total variance in wages in the US. Luck, as a result of frictions in the...

We consider a competitive equilibrium matching model where technological progress is embodied in new jobs. Jobs are slowly created over time and in equilibrium there is dispersion in job technologies. Workers can be employed in at most one job. They decide on whether to participate in the labor...

In this paper we quantify the effects of the Small Scale Reservation Laws in India on the aggregate productivity, aggregate output and welfare of the Indian economy. To this end, we extend the span-of-control model by Lucas (1978) into a multi-sector setting and embed it into the neo-classical...

We consider a competitive equilibrium growth model where technological progress is embodied into new jobs that are assigned to workers of different skills. In every period workers decide whether to actively participate in the labor market and if so how many hours to work on the job. Balanced...

We develop a new methodology to compute differences in the expected longevity of individuals who are in different socioeconomic groups at age 50. We deal with the two main problems associated with the standard use of life expectancy: that people's socioeconomic characteristics evolve over the...