git = agIit + b ( lnSi,t−1 − lnSj,t−1;,j∈Ii ) gIit + c ( lnSi,t−1 − lnSj,t−1;,j∈Ii )2 gIit + εit (36) In this model, the loading of firm i can depend not only on the industry average gIit, but also on the size of the firm. To make coeffi cients easier to interpret, I recenter by lnSj,t−1, the average log size, so that the mean of the second term is 0. Table VI reports the first stage of a varie...