On the Evolution of the Firm Size Distribution: Facts and Theory

Using a comprehensive data set of Portuguese manufacturing firms, we show that the firm size distribution is significantly right-skewed, evolving over time toward a log-normal distribution. We also show that selection accounts for very little of this evolution. Instead, we propose a simple theory based on financing constraint. A calibrated version of our model does a good job at explaining the evolution of the firm size distribution.

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Year of publication:	2001-11
Authors:	Cabral, Luís M B ; Mata, José
Institutions:	C.E.P.R. Discussion Papers
Subject:	financing constraints \| firm growth \| firm size distribution

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Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 3045
Classification:	L00 - Industrial Organization. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005504696