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On the size distribution of firms: additional evidence from the G7 countries

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Author Info

  • Gaffeo, Edoardo
  • Gallegati, Mauro
  • Palestrini, Antonio

Abstract

We analyze the average size distribution of a pool of the G7 group's firms over the period 1987–2000. In particular, firm sizes are measured employing different proxies, and after conditioning on business cycle phases. We find that: (i) the empirical distributions are all consistent with a power law; (ii) point estimates suggest that only in limited cases the exponent is equal to −1, i.e., the resulting size distribution generally is not Zipf; (iii) regardless of the variable employed to measure firm sizes, firms are distributed more equally during recessions than during expansions.

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File URL: http://www.sciencedirect.com/science/article/pii/S0378437102018903
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Bibliographic Info

Article provided by Elsevier in its journal Physica A: Statistical Mechanics and its Applications.

Volume (Year): 324 (2003)
Issue (Month): 1 ()
Pages: 117-123

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Handle: RePEc:eee:phsmap:v:324:y:2003:i:1:p:117-123

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Web page: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/

Related research

Keywords: Firm size; Scaling; Power law;

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