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The Evolution of the Distribution of Plant Size: Evidence from Luxemburg

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  • Luisito Bertinelli

    ()

  • Olivier Cardi
  • Teoman Pamukçu
  • Eric Strobl

Abstract

In a recent paper, [Cabral, L. M. B. and J. Mata, 2003, American Economic Review, 93, 1075–1090] using Portuguese manufacturing data have shown for the first time that the plant size distribution is significantly right-skewed at the early part of the life cycle and then changes to become more log-normal. Using a similar proxy for plant age we compare this stylised fact for both Luxembourg manufacturing and services. Use of plants’ true age, however, reveals that the size distribution reverses back towards right-skewness for very old plants. We confirm the finding that the right-skewness is likely driven by financial constraints. Copyright Springer 2006

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 27 (2006)
Issue (Month): 4 (December)
Pages: 301-311

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Handle: RePEc:kap:sbusec:v:27:y:2006:i:4:p:301-311

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: financial constraints; plant size distribution; F23; L11; L60;

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Cited by:
  1. Giulio Bottazzi & Angelo Secchi & Federico Tamagni, 2010. "Financial Constraints and Firm Dynamics," Discussion Papers 2010/99, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  2. Saras Sarasvathy & Anil Menon & Graciela Kuechle, 2013. "Failing firms and successful entrepreneurs: serial entrepreneurship as a temporal portfolio," Small Business Economics, Springer, vol. 40(2), pages 417-434, February.

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