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 Investigation of urban regularities for Croatia in the period from 1857 to 2011

2020 ◽  
Vol 71 (4) ◽  
pp. 307-330
Author(s):  
Hrvoje Jošić ◽  
Berislav Žmuk
Keyword(s):  
Size Distribution ◽  
Unit Root ◽  
Urban Economics ◽  
Unit Roots ◽  
City Size ◽  
Zipf’S Law ◽  
Urban Hierarchy ◽  
Zipf's Law ◽  
Gibrat’S Law ◽  
Gibrat's Law

Two main regularities in the field of urban economics are Zipf’s law and Gibrat’s law. Zipf’s law states that distribution of largest cities should obey the Pareto rank-size distribution while Gibrat’s law states that proportionate growth of cities is independent of its size. These two laws are interconnected and therefore are often considered together. The objective of this paper is the investigation of urban regularities for Croatia in the period from 1857 to 2011. In order to estimate and evaluate the structure of Croatian urban hierarchy, Pareto or Zipf’s coefficients are calculated. The results have shown that the coefficient values for the largest settlements in different years are close to one, indicating that the Croatian urban hierarchy system follows the rank-size distribution and therefore obeys Zipf's law. The independence of city growth regarding the city size is tested using penal unit roots. Results for Gibrat's law testing using panel unit root tests have shown that there is a presence of unit root in growth of settlements therefore leading to the acceptance of Gibrat’s law.

Using the Survivor Technique to Estimate Returns to Scale and Optimum Firm Size

2003 ◽  
Vol 3 (1) ◽  
Author(s):  
James N Giordano
Keyword(s):  
Size Distribution ◽  
Firm Size ◽  
Firm Growth ◽  
Returns To Scale ◽  
Gibrat’S Law ◽  
Individual Firm ◽  
Gibrat's Law ◽  
Alternative Measures

Abstract The survivor technique for estimating returns to scale and optimum firm size has generated a slow but steady literature since its 1958 pilot presentation by George Stigler. This article (1) integrates advances in its application into a complete demonstration of how the technique works, (2) distinguishes a survivor analysis from the related but different analyses of individual firm growth and size distribution as addressed, for example, by Gibrat's Law of Proportionate Effect, (3) surveys a few exemplary survivor analyses, highlighting their alternative measures of scale and survival, and (4) unifies the scattered discussion of criticisms and qualifications that surround the technique. Accordingly, this essay seeks to reposition the survivor technique as a viable statistical option for research on those industries which meet its criteria.

scholarly journals From Gibrat’s law to Zipf’s law through cointegration?

2020 ◽  
Vol 192 ◽  
pp. 109211
Author(s):  
Lalanne Aurélie ◽  
Zumpe Martin
Keyword(s):  
Zipf’S Law ◽  
Zipf's Law ◽  
Gibrat’S Law ◽  
Gibrat's Law

scholarly journals The Relationship Between Firm Size and Firm Growth: The Case of the Czech Republic

2015 ◽  
Vol 63 (5) ◽  
pp. 1639-1644 ◽  
Author(s):  
Roman Fiala ◽  
Veronika Hedija
Keyword(s):  
Czech Republic ◽  
Firm Size ◽  
Small Firms ◽  
Firm Growth ◽  
Autoregressive Process ◽  
The Czech Republic ◽  
Gibrat’S Law ◽  
First Order ◽  
Gibrat's Law ◽  
The Relationship

This paper deals with the investigation of the relationship between firm size and firm in the Czech Republic during 2007–2012. The study aims to examine to what extent the confirmation or rejection of Gibrat’s law depends on the indicator of firm size. For measuring firm size we use three indicators: revenues, number of employees and total assets. The study uses data collected from the database Albertina CZ Gold Edition. Final dataset includes the data about more than 35,000 firms. The validity of Gibrat’s law was tested with the help of linear regression model with first-order autoregressive process. Gibrat’s law is rejected for all three indicators of firm size. Hence, the selected indicator of firm size is not proved to be important factor in verification of Gibrat’s law validity. It is also found out that the small firms in profit industries (A-N according to CZ-NACE classification) grow faster than their larger counterparts in the Czech Republic.

Kinematics and dynamics of Pareto–Zipf's law and Gibrat's law

2004 ◽  
Vol 344 (1-2) ◽  
pp. 117-121 ◽  
Author(s):  
Hideaki Aoyama ◽  
Yoshi Fujiwara ◽  
Wataru Souma
Keyword(s):  
Zipf’S Law ◽  
Kinematics And Dynamics ◽  
Zipf's Law ◽  
Gibrat’S Law ◽  
Gibrat's Law

scholarly journals Firm Size Profiles And Regional Volatility: Is There A Connection:

2011 ◽  
Vol 8 (1) ◽  
pp. 52
Author(s):  
J. Barry Gilmore ◽  
Robert Dean ◽  
Peter Wright
Keyword(s):  
Size Distribution ◽  
Firm Size ◽  
Manufacturing Firms ◽  
Firm Size Distribution ◽  
Manufacturing Firm ◽  
Economic Cycles ◽  
Size Profile ◽  
National Economic ◽  
Economic Volatility ◽  
The Relationship

In recent years increasing attention has been focused on the role smaller firms play in the economy. This paper examines the relationship between a regions manufacturing firm size distribution and regional economic volatility. The study findings suggest there is a relationship between the size profile of a regions manufacturing firms and that regions sensitivity to changes in the nation economy. It was also found that fewer and fewer firms of a given size were required before a region became economically sensitive to national economic cycles.

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.

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