In this paper, we identify two counteracting effects of credit access on productivity growth: on the one hand, better access to credit makes it easier for entrepreneurs to innovate; on the other hand, better credit access allows less efficient incumbent firms to remain longer on the market,...

Becker's model (1957) explains how the distribution of prejudice among the majority leads to discrimination of the minorities. On the other hand, a more recent line of research suggests that the role of taste is marginal, discrimination being a rational answer to ex ante beliefs in minorities'...