This paper examines how production techniques differ across countries, factors, and industries and considers its implications for previous empirical evidence on the Vanek prediction. I find that production techniques differ substantially across countries and factors, but differ much less across...

Over the 1990s when Japan's city banks suffered from nonperforming loans, the number of small manufacturing establishments substantially declined. We use a heterogeneous firm model and examine how a banking crisis intensifies the exit of small firms. Our model predicts that a banking crisis has...

During 1995-2007, China enacted reforms fostering competition including acceding to the World Trade Organization (WTO) and encouraging entry of non-state firms. While there is evidence that firms reduced markups, there is competing evidence that incumbent firms gained rents. We estimate the...