Fluctuation of Firm Size in the Long-Run and Bimodal Distribution
Joint Authors
Souma, Wataru
Semmler, Willi
Grüne, Lars
Aoyama, Hideaki
Fujiwara, Yoshi
Source
Advances in Operations Research
Issue
Vol. 2011, Issue 2011 (31 Dec. 2011), pp.1-21, 21 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2011-09-05
Country of Publication
Egypt
No. of Pages
21
Main Subjects
Information Technology and Computer Science
Abstract EN
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.
American Psychological Association (APA)
Aoyama, Hideaki& Grüne, Lars& Semmler, Willi& Fujiwara, Yoshi& Souma, Wataru. 2011. Fluctuation of Firm Size in the Long-Run and Bimodal Distribution. Advances in Operations Research،Vol. 2011, no. 2011, pp.1-21.
https://search.emarefa.net/detail/BIM-458994
Modern Language Association (MLA)
Aoyama, Hideaki…[et al.]. Fluctuation of Firm Size in the Long-Run and Bimodal Distribution. Advances in Operations Research No. 2011 (2011), pp.1-21.
https://search.emarefa.net/detail/BIM-458994
American Medical Association (AMA)
Aoyama, Hideaki& Grüne, Lars& Semmler, Willi& Fujiwara, Yoshi& Souma, Wataru. Fluctuation of Firm Size in the Long-Run and Bimodal Distribution. Advances in Operations Research. 2011. Vol. 2011, no. 2011, pp.1-21.
https://search.emarefa.net/detail/BIM-458994
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-458994