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Does classical competition explain the statistical features of firm growth?

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Author Info
Alfarano, Simone
Milakovic, Mishael

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Abstract

We propose a statistical equilibrium model where the tendency for competition to equalize profit rates results in an exponential power (or Subbotin) distribution. The model supports and extends recent evidence on the Laplace distribution of firm growth rates.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4THC199-1/2/1bf0b08138fb1fe50e72e455d33c1daf
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 3 (December)
Pages: 272-274
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Handle: RePEc:eee:ecolet:v:101:y:2008:i:3:p:272-274

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Web page: http://www.elsevier.com/locate/ecolet

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Related research
Keywords: Statistical equilibrium Classical competition Maximum entropy Profit rates Firm growth rates Subbotin distribution Laplace distribution;

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This page was last updated on 2009-12-3.

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