Advanced Search
MyIDEAS: Login

New insights on the size distribution of Italian firms by geographical area

Contents:

Author Info

  • Pasquale Cirillo
  • Pietro A. Vagliasindi
  • Giuseppe Bruno
  • Carlo Bianchi

    ()
    (Institute of Mathematical Statistics and Actuarial Sciences, University of Bern
    Department of Economics, Finance and International Law, University of Parma
    Economic Research and International Relations, Bank of Italy
    Department of Economics, University of Pisa)

Abstract

Using a large industrial panel, we show that the size distribution of Italian manufacturing firms can be well approximated by a two-parameter generalized Pareto distribution (GPD); the fitting is particularly good for medium-large companies. This evidence seems to hold using different proxies of size: number of employees, revenues, fixed assets, total costs and debts. The choice of different measures of size is justified by the desire of presenting robust results, but also by the idea that one single optimal measure of size probably does not exist, and it is thus better to combine different points of view. We believe that such an approach represents a clear novelty of our work. The presence of a GPD in the size distribution of Italian firms suggests interesting implications of industrial economics, as discussed in the paper. In more details, we find that, for the entire time window considered, the parameter of the GPD is persistently in the interval [0.5, 1], indicating fat tails - consistently with the so-called Pareto law of industrial dynamics, but also pointing out a certain stability in the shape of the size distribution of Italian firms. For what concerns growth rates, the Laplace distribution provides a good fit, ruling out Gibrat’s law of proportionate effects from the patterns of growth of Italian companies. In the paper we discuss the economic implications of such a finding.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 70 (2011)
Issue (Month): 2 (July)
Pages: 59-91

as in new window
Handle: RePEc:gde:journl:gde_v70_n2_p59-91

Contact details of provider:
Postal: via Sarfatti, 25 - 20136 Milano (Italy)
Phone: 0039-02-58365306
Web page: http://www.gde.unibocconi.it/

Order Information:
Email:
Web: http://www.gde.unibocconi.it

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:gde:journl:gde_v70_n2_p59-91. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Erika Somma).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.