Does classical competition explain the statistical features of firm growth?

We propose a statistical equilibrium model where the tendency for competition to equalize profit rates results in an exponential power (or Subbotin) distribution. The model supports and extends recent evidence on the Laplace distribution of firm growth rates.

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Year of publication:	2008
Authors:	Alfarano, Simone ; Milakovic, Mishael
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 101.2008, 3, p. 272-274
Publisher:	Elsevier
Keywords:	Statistical equilibrium Classical competition Maximum entropy Profit rates Firm growth rates Subbotin distribution Laplace distribution

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005296751