The exponential age distribution and the Pareto firm size distribution

Alex Coad ()

No 2008-072, Jena Economic Research Papers in Economics from Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek

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.

Keywords: Firm size distribution; Firm growth; Gibrat's Law; Pareto distribution; Zipf Law (search for similar items in EconPapers)
JEL-codes: L20 L25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-ent
Date: 2008-09-24

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Persistent link: http://EconPapers.repec.org/RePEc:jrp:jrpwrp:2008-072

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