Scaling invariant distributions of firms’ exit in OECD countries

Self-similar models are largely used to describe the extinction rate of biological species. In this paper we analyse the extinction rate of firms in eight OECD countries. Firms are classified by industrial sectors and sizes. We find that while a power-law distribution with exponent close to 2 fits the extinction rate very well by sector, a Weibull distribution is more appropriate if one analyses the firms’ size.

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Year of publication:	2004
Authors:	Guilmi, Corrado Di ; Gallegati, Mauro ; Ormerod, Paul
Published in:	Physica A: Statistical Mechanics and its Applications. - Elsevier, ISSN 0378-4371. - Vol. 334.2004, 1, p. 267-273
Publisher:	Elsevier
Subject:	Econophysics \| Scale invariance \| Weibull distribution

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

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010589143