EconPapers    
Economics at your fingertips  
 

Granularity of the top 1,000 Brazilian companies

Sergio Da Silva (), Raul Matsushita, Ricardo Giglio and Gunther Massena

Physica A: Statistical Mechanics and its Applications, 2018, vol. 512, issue C, 68-73

Abstract: “Granularity” refers to the fact that economies are populated by a few large companies (the big “grains”) that coexist with many smaller companies. Such a distribution of firm sizes is modeled by power laws. This study adds to the international evidence of the granularity hypothesis by considering data for the top 1,000 Brazilian companies. We sort the companies from top to bottom in terms of their net revenues. Then, we adjust power laws to the data and estimate Pareto and Gumbel exponents. We find we cannot dismiss the hypothesis of granularity for the Brazilian companies. We also find the Pareto exponent is approximately one (1.070 ± .015), roughly a Zipf’s law. Such a result is in line with the previous one found for American companies where the Pareto exponent = 1.059. We also find a power-law progress curve best fits the data.

Keywords: Granularity; Companies; Firm-size distribution; Power law; Zipf’s law; Power-law progress curve (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437118309531
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:512:y:2018:i:c:p:68-73

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-14
Handle: RePEc:eee:phsmap:v:512:y:2018:i:c:p:68-73