external finance, facilitating the formation of new establishments, and improving the efficiency of capital allocation across … overall financial development boost industry growth, new establishment formation, and efficient capital allocation, having a …

constraints and distortions to the marginal rental-rate of capital, and develop a measure for the intra-industry misallocation of … factors of production. The distribution of rental rate of capital and two types of firm-level balance sheet characteristics … productivity (TFP). In the model firms that face high capital rental rates borrow in the financial market to lower the marginal …