On the Evolution of the Firm Size Distribution: Facts and Theory

Luís M. B. Cabral, José Mata

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Abstrakt

Using a comprehensive data set of Portuguese manufacturing firms, we show that the firm size distribution is significantly right-skewed, evolving over time toward a lognormal distribution. We also show that selection accounts for very little of this evolution. Instead, we propose a simple theory based on financing constraints. A calibrated version of our model does a good job at explaining the evolution of the firm size distribution.
OriginalsprogEngelsk
TidsskriftThe American Economic Review
Vol/bind93
Udgave nummer4
Sider (fra-til)1075-1090
Antal sider16
ISSN0002-8282
DOI
StatusUdgivet - sep. 2003
Udgivet eksterntJa

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