Plant-level innovation is introduced into an heterogeneous plant setting so that productivity dynamics are endogenous. When policy distortions are positively correlated with plant productivity, I argue that accounting for plant innovation is important for understanding TFP differences across...

We construct a new dataset for the average employment size of establishments across sectors and countries from hundreds of sources. Establishments are larger in manufacturing than in services, and in each sector they are larger in richer countries. The cross-country income elasticity of...

We construct a new dataset for the average employment size of establishments across sectors and countries from hundreds of sources. Establishments are larger in manufacturing than in services, and in each sector they are larger in richer countries. The cross-country income elasticity of...