EconPapers    
Economics at your fingertips  
 

Firm Size Distribution and Returns to Scale. Non-Parametric Frontier Estimates from Italian Manufacturing

Lisa Crosato (), Sergio Destefanis () and Piero Ganugi ()
Additional contact information
Lisa Crosato: Università di Milano-Bicocca
Piero Ganugi: Università Cattolica del Sacro Cuore, Piacenza

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: This paper explores the relationship between firm size distribution and technology. We analyse firm technology across selected manufacturing industries by means of a non-parametric production analysis, the Free Disposal Hull approach (Deprins et al., 1984; Kerstens and Vanden Eeckaut, 1999) and appraise the links between size and scale elasticity, finding a clear inverse relationship. Building on this result, we inquire whether the shape of the firm size distribution is related to a particular pattern of scale elasticities. We rely on the Zipf Plot (Stanley et al., 1995) of the Pareto IV distribution, which is concave up to a given threshold, and then approximately linear. Firms in the concave part of the plot are overwhelmingly found to experience increasing returns to scale. On the contrary, firms in the linear part are mainly characterised by constant returns to scale.

JEL-codes: C14 D20 L11 L6 (search for similar items in EconPapers)
Date: 2009-05-07
New Economics Papers: this item is included in nep-bec and nep-eff
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Published in Innovation, Globalization and Firm Dynamics Lessons for Enterprise Policy, Ferragina A.M., E. Taymaz and K. Yilmaz (eds), Routledge, London, 2013, pp. 71-94

Downloads: (external link)
http://www.csef.it/WP/wp228.pdf (application/pdf)

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:sef:csefwp:228

Access Statistics for this paper

More papers in CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Maria Carannante ().

 
Page updated 2022-01-24
Handle: RePEc:sef:csefwp:228