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Firm Entry, Trade, and Welfare in Zipf's World

Di Giovanni, Julian - 2010

Firm size follows Zipf's Law, a very fat-tailed distribution that implies a few large firms account for a disproportionate share of overall economic activity. This distribution of firm size is crucial for evaluating the welfare impact of economic policies such as barriers to entry or trade...

Persistent link: https://www.econbiz.de/10013138768

Misallocation, Establishment Size, and Productivity

Bento, Pedro - 2016

We consider a tractable model of heterogeneous production units that features endogenous entry and productivity investment to assess the quantitative impact of policy distortions on aggregate output and establishment size. Relative to the standard factor misallocation framework, policy...

Persistent link: https://www.econbiz.de/10012979762

Professor Zipf Goes to Wall Street

Malevergne, Yannick - 2009

The heavy-tailed distribution of firm sizes first discovered by Zipf (1949) is one of the best established empirical facts in economics. We show that it has strong implications for asset pricing. Due to the concentration of the market portfolio when the distribution of the capitalization of...

Persistent link: https://www.econbiz.de/10013156683

Size-Dependent Regulations, Firm Size Distribution, and Reallocation

Gourio, François - 2014

In France, firms with 50 employees or more face substantially more regulation than firms with less than 50. As a result, the size distribution of firms is visibly distorted: there are many firms with exactly 49 employees. We model the regulation as the combination of a sunk cost that must be...

Persistent link: https://www.econbiz.de/10013064826

A Unified Theory of Firm Selection and Growth

Arkolakis, Costas - 2011

This paper studies the effects of marketing choice to firm growth. I assume that firm-level growth is the result of idiosyncratic productivity improvements with continuous arrival of new potential producers. A firm enters a market if it is profitable to incur the marginal cost to reach the first...

Persistent link: https://www.econbiz.de/10013119036

Permission to Exist

Byford, Martin C. - 2014

We provide a new model that generates persistent performance differences amongst seemingly similar enterprises. Our model provides a mechanism whereby efficient incumbent rivals can give permission for an inefficient firm to exist in the presence of efficient entrants. We demonstrate that, in a...

Persistent link: https://www.econbiz.de/10013047026

On Average Establishment Size Across Sectors and Countriesy

Bento, Pedro - 2018

We construct a new dataset for the average employment size of establishments across sectors and countries from hundreds of sources. Establishments are larger in manufacturing than in services, and in each sector they are larger in richer countries. The cross-country income elasticity of...

Persistent link: https://www.econbiz.de/10012911722

Bank Liquidity Provision Across the Firm Size Distribution

Chodorow-Reich, Gabriel; Darmouni, Olivier; Luck, Stephan; … - 2021

We use supervisory loan-level data to document that small firms (SMEs) obtain shorter maturity credit lines than large firms; have less active maturity management; post more collateral; have higher utilization rates; and pay higher spreads. We rationalize these facts as the equilibrium outcome...

Persistent link: https://www.econbiz.de/10013228992

Firm Size Dynamics in the Aggregate Economy

Rossi-Hansberg, Esteban; Wright, Mark L. J. - 2021

presents a theory of firm dynamics that simultaneously rationalizes the basic facts on firm growth, exit, and size … distributions. The theory emphasizes the accumulation of industry specific human capital in response to industry specific … productivity shocks. The theory implies that firm growth and exit rates should decline faster with size, and the size distribution …

Persistent link: https://www.econbiz.de/10013234080

Deregulation, Misallocation, and Size : Evidence from India

Alfaro, Laura - 2014

This paper examines the impact of the deregulation of compulsory industrial licensing in India on firm-size dynamics and the reallocation of resources within industries over time. Following deregulation, we find that the extent of resource misallocation declines and a considerable thickening of...

Persistent link: https://www.econbiz.de/10013064852