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Is firm growth proportional? An appraisal of firm size distribution

  • Francesca Lotti

    ()

    (Sant'Anna School of Advanced Studies - Pisa, Italy)

  • Enrico Santarelli

    ()

    (Economics Department, University of Bologna)

The aim of this paper is to shed light on the phenomenon of firm growth, analyzing the evolution of young firms within some selected industries. We find that the firm size distribution is fairly skewed to the right during the infancy stage, whereas it converges towards a more symmetric distribution, via selection mechanisms, with the passing of time.

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File URL: http://www.accessecon.com/pubs/EB/2001/Volume12/EB-01L10006A.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 12 (2001)
Issue (Month): 6 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-01l10006
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  1. Peter Hart & Nicholas Oulton, 1999. "Gibrat, Galton and Job Generation," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(2), pages 149-164.
  2. Ijiri, Yuji & Simon, Herbert A, 1974. "Interpretations of Departures from the Pareto Curve Firm-Size Distributions," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 315-31, Part I, M.
  3. Boeri, Tito & Bellmann, Lutz, 1995. "Post-entry behaviour and the cycle: Evidence from Germany," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 483-500, December.
  4. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
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