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The exponential age distribution and the Pareto firm size distribution

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Author Info
Alex Coad () (Max Planck Institute of Economics, Jena, Germany)

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Abstract

Recent 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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Publisher Info
Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers in Economics with number 2008-072.

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Date of creation: 24 Sep 2008
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Handle: RePEc:jrp:jrpwrp:2008-072

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Web page: http://www.jenecon.de

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Related research
Keywords: Firm size distribution; Firm growth; Gibrat's Law; Pareto distribution; Zipf Law;

Find related papers by JEL classification:
L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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This page was last updated on 2009-12-8.

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