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The Industry Life-Cycle of the Size Distribution of Firms

Author

Listed:
  • Emin Dinlersoz

    (Census Bureau)

  • Glenn MacDonald

    (Wahington University)

Abstract

This paper analyzes the evolution of the distributions of output and employment across firms in U.S. manufacturing industries from 1963 until 1997. The firm size distribution changes significantly as an industry goes through stages of its life-cycle. The evolutions of the employment and output distributions also differ significantly, but display strong inter-industry regularities, including that the nature of the evolution depends on whether the industry is experiencing growth, shakeout, maturity, or decline. The observed patterns have implications for theories of industry dynamics and evolution. (Copyright: Elsevier)

Suggested Citation

  • Emin Dinlersoz & Glenn MacDonald, 2009. "The Industry Life-Cycle of the Size Distribution of Firms," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(4), pages 648-667, October.
    • Handle: RePEc:red:issued:07-107
    DOI: 10.1016/j.red.2009.01.001
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    More about this item

    Keywords

    Firm size distribution; Industry evolution; Industry dynamics; Manufacturing industries;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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