Firm size and firm growth rate distributions--The case of Denmark
Toke Reichstein () and
Industrial and Corporate Change, 2005, vol. 14, issue 6, 1145-1166
There has been a recent renewed interest in the study of firm size distributions and firm growth rate distributions. Gibrat's law assumes firm growth rates are independent and identically distributed and that size is determined by a first-order integrated process, leaving the size distribution log-normal. This article analyzes these distribution patterns in an empirical context, questioning the foundation of this model. In a cross-section analysis of four industries using Danish data, we show that the foundation and the outcome of Gibrat's law are empirically far-fetched. In particular, significant deviations from normality are found. Copyright 2005, Oxford University Press.
References: Add references at CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:indcch:v:14:y:2005:i:6:p:1145-1166
Ordering information: This journal article can be ordered from
Access Statistics for this article
Industrial and Corporate Change is currently edited by David Teece, Glenn R. Carroll, Nick Von Tunzelmann, Giovanni Dosi and Franco Malerba
More articles in Industrial and Corporate Change from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().