The exponential age distribution and the Pareto firm size distribution
AbstractRecent work drawing on data for large and small firms has shown a Pareto distribution of firm size. We mix a Gibrat-type growth process among incumbents with an exponential distribution of firm's age, to obtain the empirical Pareto distribution.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-072.
Date of creation: 24 Sep 2008
Date of revision:
Firm size distribution; Firm growth; Gibrat's Law; Pareto distribution; Zipf Law;
Other versions of this item:
- Alex Coad, 2010. "The Exponential Age Distribution and the Pareto Firm Size Distribution," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 389-395, September.
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-07 (All new papers)
- NEP-BEC-2008-10-07 (Business Economics)
- NEP-ENT-2008-10-07 (Entrepreneurship)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Alex Coad, 2009.
"Investigating the exponential age distribution of firms,"
Papers on Economics and Evolution
2009-23, Max Planck Institute of Economics, Evolutionary Economics Group.
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