The exponential age distribution and the Pareto firm size distribution
Alex Coad ()
No 2008-072, Jena Economics Research Papers from Friedrich-Schiller-University Jena
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)
Date: 2008-09-24
New Economics Papers: this item is included in nep-bec and nep-ent
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Citations: View citations in EconPapers (4)
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Related works:
Journal Article: The Exponential Age Distribution and the Pareto Firm Size Distribution (2010) 
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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2008-072
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