Common Properties and Sectoral Specificities in the Dynamics of U.S. Manufacturing Companies
AbstractThe size distribution and growth rate dynamics of U.S. companieshave been extensively studied by many authors. In this paper,using the COMPUSTAT database, we extend the analysis todisaggregated data, studying 15 sectors of the U.S.manufacturing industry. The sectoral investigation reveals thepresence of general statistical properties that can be consideredvalid across all the studied sectors. In particular, theprobability density of firms growth rates invariably displays acharacteristic tent shape and the relation between the size of afirm and the variance of its rates of growth is characterized, indifferent sectors, by very similar scaling relations. Thepresence of characteristics that are robust and sectoral invarianthints at the existence of generic statistical properties shapingthe dynamic of firms across the whole industry. Copyright Kluwer Academic Publishers 2003
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Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 23 (2003)
Issue (Month): 3 (December)
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Web page: http://www.springerlink.com/link.asp?id=100336
Firm growth; industrial sectors; Laplace distribution; power law;
Other versions of this item:
- Giulio Bottazzi & Angelo Secchi, 2003. "Common Properties and Sectoral Specificities in the Dynamics of U.S. Manufacturing Companies," Review of Industrial Organization, Springer, vol. 23(3_4), pages 217-232, December.
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