New firms are often based on ideas that the founders developed while working for incumbent firms. We study the macroeconomic effects of spinoffs through a growth model of product variety expansion, driven by firm entry, and product innovation. Spinoffs stem from conflicts of interest between...

New Örms are often based on ideas that the founders developed while working for incumbent Örms. We study the macroeconomic e§ects of spino§s through a growth model of product variety expansion, driven by Örm entry, and product innovation. Spino§s stem from conáicts of interest between...

Credit frequently flows to the business sector through information-intensive bank-firm relationships. This paper studies the impact of relationship banking on firm entry. Exploiting Italian data, we document that relationship-oriented local credit markets feature lower firm entry, larger size at...