Firm Start-Up Size: A Conditional Quantile Approach

José Mata*, José A. F. Machado

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Using data on the individual firms created in Portugal, we evaluate the importance of industry attributes for the distribution of firm start-up size. By estimating conditional quantile functions we take ‘snap-shots’ of the conditional distribution of new firms' dimension at different quantiles. This approach provides answers that usual methods do not, namely, how different entry is at ‘small’ and ‘large’ scales. We find that industry attributes, such as scale economies and turbulence, are more important for the largest entrants.
Original languageEnglish
JournalEuropean Economic Review
Volume40
Issue number6
Pages (from-to)1305-1323
Number of pages19
ISSN0014-2921
DOIs
Publication statusPublished - Jun 1996
Externally publishedYes

Keywords

  • Entry
  • Industry turbulence
  • Firm start-up size
  • Sunk costs
  • Regression quantiles
  • Conditional quantile function

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