On firm size distribution: statistical models, mechanisms, and empirical evidence
| Autor: | Márcio Antônio Fiori, ANNA MARIA FIORI |
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| Přispěvatelé: | Fiori, A |
| Rok vydání: | 2019 |
| Předmět: |
Statistics and Probability
Stylized fact Gibrat's law Statistical model 01 natural sciences Unimodality 010104 statistics & probability Empirical research Dagum distribution Gibrat’s Law Generalized beta distribution of the second kind Dagum distribution Firm growth Range (statistics) Econometrics Economics 0101 mathematics Statistics Probability and Uncertainty Empirical evidence |
| Zdroj: | Statistical Methods & Applications. 29:447-482 |
| ISSN: | 1613-981X 1618-2510 |
| DOI: | 10.1007/s10260-019-00485-7 |
| Popis: | In this work we explain the size distribution of business firms using a stochastic growth process that reproduces the main stylized facts documented in empirical studies. The steady state solution of this process is a three-parameter Dagum distribution, which possibly combines strong unimodality with a Paretian upper tail. Thanks to its flexibility, the proposed distribution is able to fit the whole range of firm size data, in contrast with traditional models that typically focus on large businesses only. An empirical application to Italian firms illustrates the practical merits of the Dagum distribution. Our findings go beyond goodness-of-fit per se, and shed light on possible connections between stochastic elements that influence firm growth and the meaning of parameters that appear in the steady state distribution of firm size. These results are ultimately relevant for studies into industrial organization and for policy interventions aimed at promoting sustainable growth and monitoring industrial concentration phenomena. |
| Databáze: | OpenAIRE |
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