In this paper we analyze the relationship between the distribution of firm size and stochastic processes of growth. Three main models have been suggested by Gibrat (1931), Kalecki (1945) and Champernowne (1973). The first two lead to lognormal distribution and the last to Pareto distribution. We fitted lognormal and Pareto distribution to two Italian sectors: ICT and mechanical. For ICT we found that lognormal distribution must be rejected and Pareto fits reasonably well to the last 30% of largest companies. For mechanical sector we can not reject lognormal distribution. Furthermore, we perform some experiments to corroborate the theoretical models. By means of transition matrices we found that ICT shows features very close to Gibrat’s and Champernowne’s models, while Kalecki’s model strongly fits to mechanical

Ganugi, P., Grossi, L., Crosato, L. (2004). Firm size distributions and stochastic growth models: a comparison between ICT and Mechanical Italian Companies. STATISTICAL METHODS & APPLICATIONS, 12(3), 391-414 [10.1007/s10260-003-0073-z].

Firm size distributions and stochastic growth models: a comparison between ICT and Mechanical Italian Companies

Crosato, L.
2004

Abstract

In this paper we analyze the relationship between the distribution of firm size and stochastic processes of growth. Three main models have been suggested by Gibrat (1931), Kalecki (1945) and Champernowne (1973). The first two lead to lognormal distribution and the last to Pareto distribution. We fitted lognormal and Pareto distribution to two Italian sectors: ICT and mechanical. For ICT we found that lognormal distribution must be rejected and Pareto fits reasonably well to the last 30% of largest companies. For mechanical sector we can not reject lognormal distribution. Furthermore, we perform some experiments to corroborate the theoretical models. By means of transition matrices we found that ICT shows features very close to Gibrat’s and Champernowne’s models, while Kalecki’s model strongly fits to mechanical
Articolo in rivista - Articolo scientifico
Gibrat law, Pareto distribution, Lognormal distribution, Concentration, Firm size
English
2004
12
3
391
414
none
Ganugi, P., Grossi, L., Crosato, L. (2004). Firm size distributions and stochastic growth models: a comparison between ICT and Mechanical Italian Companies. STATISTICAL METHODS & APPLICATIONS, 12(3), 391-414 [10.1007/s10260-003-0073-z].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/180718
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