Fluctuation of firm size in the long-run and bimodal distribution
type: Item
instance of: scholarly article
title: Fluctuation of firm size in the long-run and bimodal distribution
zbMATH Open document ID: 1233.91211
DOI: 10.1155/2011/269239
author: Hideaki Aoyama
author: Lars Grüne
author: Willi Semmler
author: Yoshi Fujiwara
author: Wataru Souma
published in: Advances in Operations Research
publication date: 2012-03-08T00:00:00Z
review text: Summary: 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.
Mathematics Subject Classification ID: 91B82
zbMATH DE Number: 6013009
Wikidata QID: Q58655022
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2011/269239
OpenAlex ID: W2120092117
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description: scientific article; zbMATH DE number 6013009