A stochastic analysis of firm dynamics: Their impact on the firm size distribution

2021 ◽  
Vol 570 ◽  
pp. 125817
Author(s):  
Alexandre Reginster
Keyword(s):  
Size Distribution ◽  
Firm Size ◽  
Stochastic Analysis ◽  
Firm Dynamics ◽  
Firm Size Distribution

scholarly journals Large Firm Dynamics and the Business Cycle

2019 ◽  
Vol 109 (4) ◽  
pp. 1375-1425 ◽  
Author(s):  
Vasco M. Carvalho ◽  
Basile Grassi
Keyword(s):  
Business Cycle ◽  
Size Distribution ◽  
Firm Size ◽  
Large Firm ◽  
Firm Dynamics ◽  
Aggregate Fluctuations ◽  
Firm Level ◽  
Firm Size Distribution ◽  
The Business Cycle

Do large firm dynamics drive the business cycle? We answer this question by developing a quantitative theory of aggregate fluctuations caused by firm-level disturbances alone. We show that a standard heterogeneous firm dynamics setup already contains in it a theory of the business cycle, without appealing to aggregate shocks. We offer an analytical characterization of the law of motion of the aggregate state in this class of models, the firm size distribution, and show that aggregate output and productivity dynamics display: (i ) persistence, (ii ) volatility, and (iii ) time-varying second moments. We explore the key role of moments of the firm size distribution, and, in particular, the role of large firm dynamics, in shaping aggregate fluctuations, theoretically, quantitatively, and in the data. (JEL D21, D22, D24, E32, L11)

scholarly journals Big Data and Firm Dynamics

2019 ◽  
Vol 109 ◽  
pp. 38-42 ◽  
Author(s):  
Maryam Farboodi ◽  
Roxana Mihet ◽  
Thomas Philippon ◽  
Laura Veldkamp
Keyword(s):  
Big Data ◽  
Size Distribution ◽  
Firm Size ◽  
Firm Dynamics ◽  
Social Value ◽  
The Other ◽  
Intangible Asset ◽  
Small Data ◽  
Firm Size Distribution ◽  
Asset Data

We study a model where firms accumulate data as a valuable intangible asset. Data accumulation affects firms' dynamics. It increases the skewness of the firm size distribution as large firms generate more data and invest more in active experimentation. On the other hand, small data-savvy firms can overtake more traditional incumbents, provided they can finance their initial money-losing growth. Our model can be used to estimate the market and social value of data.

scholarly journals Lessons from Schumpeterian Growth Theory

2015 ◽  
Vol 105 (5) ◽  
pp. 94-99 ◽  
Author(s):  
Philippe Aghion ◽  
Ufuk Akcigit ◽  
Peter Howitt
Keyword(s):  
Industrial Organization ◽  
Size Distribution ◽  
Firm Size ◽  
Growth Process ◽  
Firm Dynamics ◽  
Growth Theory ◽  
Micro Data ◽  
Firm Size Distribution ◽  
Schumpeterian Growth ◽  
Schumpeterian Growth Theory

By operationalizing the notion of creative destruction, Schumpeterian growth theory generates distinctive predictions on important microeconomic aspects of the growth process (competition, firm dynamics, firm size distribution, cross-firm and cross-sector reallocation) which can be confronted using rich micro data. In this process the theory helps reconcile growth with industrial organization and development economics.

Employers and the 1881 Population Census of England and Wales

2015 ◽  
pp. 29-49 ◽  
Author(s):  
Robert J. Bennett ◽  
Gill Newton
Keyword(s):  
Systematic Error ◽  
Size Distribution ◽  
Firm Size ◽  
Extraction Method ◽  
Building Industry ◽  
Population Census ◽  
Firm Size Distribution ◽  
England And Wales ◽  
Occupational Information ◽  
First Results

This article presents the method and first results of using the 1881 England and Wales Census Enumerators' Books (CEBs) to identify and extract employer records using occupational information. Over 230,000 employers are identified, of which about four fifths employ others. Important sub-groups are also identified of the own account selfemployed, company proprietors, directors and partnerships. The article demonstrates the feasibility of the method and uses the example of the building industry to illustrate firm-size distribution at parish level across England and Wales. The paper indicates the applicability of the extraction method to other censuses, which is now possible using the recently released I-CeM database. The paper also demonstrates some difficulties in the database for 1881, including data keying and coding errors, ranging from 0.5 to 5.5 per cent of entries for larger businesses. Gender miscoding appears to be a systematic error of about 0.7 per 1,000 people. The analysis suggests that where small or atypical sample groups are involved, users of the census database should make detailed checks with manuscript CEBs.

Growth and Firm Size Distribution

2016 ◽  
Vol 14 (2) ◽  
pp. 61-73
Author(s):  
Wei Zhang ◽  
Yan-Chun Zhu ◽  
Jian-Bo Wen ◽  
Yi-Jie Zhuang
Keyword(s):  
Size Distribution ◽  
Firm Size ◽  
Zipf’S Law ◽  
Growth Path ◽  
Firm Size Distribution ◽  
Zipf's Law ◽  
Gibrat’S Law ◽  
Gibrat's Law ◽  
Quantile Regression Method ◽  
The Relationship

Studies on the firm's size distribution (FSD) can set a good foundation to know about the growth path and mechanism of e-commerce firms. The purpose of this paper is to understand features of the China's listed e-commerce firms by testing Gibrat's law and Zipf's law within the Internet sectors. From a macroscopic perspective, with the approach of OLS estimation, Zipf's coefficient of the FSD is calculated to test whether Zipf's law holds. From a microscopic perspective, the relationship between e-commerce firm size and growth is explored by quantile regression method. The results indicate that from 2005 to 2014, Zipf's law cannot be rejected, with the relationship changing over time, Gibrat's law holds partly. It implies that competition status among China's e-commerce firms becomes more stable.

scholarly journals Fluctuation of Firm Size in the Long-Run and Bimodal Distribution

2011 ◽  
Vol 2011 ◽  
pp. 1-21 ◽  
Author(s):  
Hideaki Aoyama ◽  
Lars Grüne ◽  
Willi Semmler ◽  
Yoshi Fujiwara ◽  
Wataru Souma
Keyword(s):  
Size Distribution ◽  
Firm Size ◽  
Time Distribution ◽  
Decision Problem ◽  
Bimodal Distribution ◽  
Economic Literature ◽  
Data Set ◽  
Firm Size Distribution ◽  
Long Run ◽  
Different Types

We study empirically and analytically growth and fluctuation of firm size distribution. An empirical analysis is carried out on a US data set on firm size, with emphasis on one-time distribution as well as growth-rate probability distribution. Both Pareto's law and Gibrat's law are often used to study firm size distribution. Their theoretical relationship is discussed, and it is shown how they are complementable with a bimodal distribution of firm size. We introduce economic mechanisms that suggest a bimodal distribution of firm size in the long run. The mechanisms we study have been known in the economic literature since long. Yet, they have not been studied in the context of a dynamic decision problem of the firm. Allowing for these mechanism thus will give rise to heterogeneity of firms with respect to certain characteristics. We then present different types of tests on US data on firm size which indicate a bimodal distribution of firm size.

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