Does classical competition explain the statistical features of firm growth?

Simone Alfarano and Mishael Milaković

Economics Letters, 2008, vol. 101, issue 3, 272-274

Abstract: We propose a statistical equilibrium model where the tendency for competition to equalize profit rates results in an exponential power (or Subbotin) distribution. The model supports and extends recent evidence on the Laplace distribution of firm growth rates.

Keywords: Statistical; equilibrium; Classical; competition; Maximum; entropy; Profit; rates; Firm; growth; rates; Subbotin; distribution; Laplace; distribution (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (38)

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