This paper explores the evolution of the average wage of employees over the life-cycle of a manufacturing plant. The average wage starts out low for a new plant and increases along with labor productivity as the plant ages. As a plant approaches exit, its average wage falls, but more slowly than...

This paper examines the causal effect of mergers and acquisitions (M&A) on bank productivity (Q) in 23 European Union countries and the short- and long-term relationship among fixed assets (k1), liquid assets (k2), and labour (L) over the period 1990–2013 for a sample of 156 commercial banks,...

__Abstract__ Banks play a crucial role for the financing of small and medium-sized enterprises (SMEs). SMEs represent a large fraction of all firms in many economies and contribute significantly to employment and growth. But, SMEs are more informationally opaque, more risky, more financially...

How and why does the firm size distribution differ across countries? Using two datasets covering more than 30 countries, this paper documents that several features of the firm size distribution are strongly associated with income per capita: the entrepreneurship rate and the fraction of small...

We provide the first measurement of knowledge spillovers from venture capital-financed companies onto the patenting activities of other companies. On average, these spillovers are nine times larger than those generated by the R&D investment of established companies. Spillover effects are larger...

We provide the first measurement of knowledge spillovers from venture capital-financed companies onto the patenting activities of other companies. On average, these spillovers are nine times larger than those generated by the R&D investment of established companies. Spillover effects are larger...

Policy makers typically interpret positive relations between venture capital investments and innovations as an evidence that venture capital investments stimulate innovation (quot;VC-first hypothesisquot;). This interpretation is, however, one-sided because there may be a reverse causality that...