Entry and Exit, Multiproduct Firms, and Allocative Distortions
研究企业进入退出和多产品选择如何影响消除配置扭曲后的长期全要素生产率和福利收益，发现福利收益是长期生产率变化的两倍以上。
Most studies quantifying the gains from reversing allocative distortions are static in nature. We propose a model of firm dynamics featuring entry, exit, and multiproduct firms to understand the contribution of these dynamic factors in shaping the welfare and long-run productivity gains from removing distortions. We find that while the entry and exit of firms and their product-portfolio choices exert countervailing forces over long-run total factor productivity (TFP), they reinforce each other in shaping the welfare gains from reversing misallocation. Welfare gains, which account for transition dynamics, become more than twice as high as the long-run changes in TFP.