Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Growth Dynamics Of German Business Firms


Author Info


    (Theoretische Physik 1, Universität Bayreuth, D-95440 Bayreuth, Germany; Fakultät für Physik, Albert-Ludwigs-Universität, D-79104 Freiburg, Germany)

Registered author(s):


    We determine the distribution of size and growth rates of German business firms in 1987–1997. We find a log-normal size distribution. The distribution of growth rates has fat tails. It can be fitted to an exponential in a narrow central region and is dominated by finite-sample-size effects far in its wings. We study the dependence of the growth rate distribution on firm size: depending on procedures, we find almost no dependence when the center of the distribution is considered or, similar to previous work, a power-law when the wings are weighted more strongly. Correlations in the growth of different firms are essentially random. We determine the annual growth of the entire economy, and successfully correlate it with a standard economic indicator of business cycles in Germany. We emphasize possible problems related to the finite number of firms comprised in our database and its short extension in time.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Advances in Complex Systems.

    Volume (Year): 04 (2001)
    Issue (Month): 01 ()
    Pages: 149-162

    as in new window
    Handle: RePEc:wsi:acsxxx:v:04:y:2001:i:01:p:149-162

    Contact details of provider:
    Web page:

    Order Information:

    Related research

    Keywords: Company sizes; firm growth; log-normal; exponential; fat-tailed distributions; business cycles; economic indicators;


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


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Segarra, Agustí & Teruel, Mercedes, 2012. "An appraisal of firm size distribution: Does sample size matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 314-328.


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


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:wsi:acsxxx:v:04:y:2001:i:01:p:149-162. 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: (Tai Tone Lim).

    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.