"In public discourse in the United States, small businesses are lauded as drivers of the economy and keys to economic growth, while "big business" is often vilified. Even in the face of evidence that larger firms are proven to be more likely to stimulate economic growth, American public policy favors small businesses through measures such as lowering taxes or regulatory requirements for firms under a certain number of employees. The authors trace the anti-big business sentiment back to its roots in the early founding of our nation. While the Jeffersonian ideal of every citizen being self-employed made sense for a pre-industrial agrarian society, changes in technology have led to significant economies of scale for big businesses. Now, we see that countries with more self-employed workers are also more likely to be in poverty (think of emerging economies where everyone is an entrepreneur, and compare it to the compensation and benefits packages available to employees of large firms in more advanced economies). Rather than simply taking the opposite view that "bigger is better," the authors argue that a modern capitalist society has room for businesses of all sizes and that we should not be privileging one type of business over another due to size alone, especially when our perception of who creates jobs and grows the economy does not track with reality"--

Volumes 2A and 2B of The Handbook of Economic Growth summarize recent advances in theoretical and empirical work while offering new perspectives on a range of growth mechanisms, from the roles played by institutions and organizations to the ways factors beyond capital accumulation and technological change can affect growth. Written by research leaders, the chapters summarize and evaluate recent advances while explaining where further research might be profitable. With analyses that are provocative and controversial because they are so directly relevant to public policy and private decision-making, these two volumes uphold the standard for excellence in applied economics set by Volumes 1A and 1B (2005). It offers definitive theoretical and empirical scholarship about growth economics. It empowers readers to evaluate the work of other economists and to plan their own research projects. It demonstrates the value of empirical testing, with its implicit conclusion that our understanding of economic growth will help everyone make better decisions.