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Gibrat's Law and quantile regressions : an application to firm growth
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Distante, Roberta, Petrella, Ivan and Santoro, Emiliano (2018) Gibrat's Law and quantile regressions : an application to firm growth. Economics Letters, 164 . pp. 5-9. doi:10.1016/j.econlet.2017.12.028
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WRAP-Gibrat's-law-quantile-regressions-application-firm-growth-Petrella-2017.pdf - Accepted Version - Requires a PDF viewer. Available under License Creative Commons Attribution Non-commercial No Derivatives 4.0. Download (567Kb) | Preview |
Official URL: https://doi.org/10.1016/j.econlet.2017.12.028
Abstract
The nexus between firm growth, size and age in U.S. manufacturing is examined through the lens of quantile regression models. This methodology allows us to overcome serious shortcomings entailed by linear regression models employed by much of the existing literature, unveiling a number of important properties. Size pushes both low and high performing firms towards the median rate of growth, while age is never advantageous, and more so as firms are relatively small and grow faster. These findings support theoretical generalizations of Gibrat's law that allow size to affect the variance of the growth process, but not its mean (Cordoba, 2008).
| Item Type: | Journal Article | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Subjects: | H Social Sciences > HD Industries. Land use. Labor | ||||||||
| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||||
| Library of Congress Subject Headings (LCSH): | Business enterprises -- Growth -- Mathematical models -- United States, Quantile regression | ||||||||
| Journal or Publication Title: | Economics Letters | ||||||||
| Publisher: | Elsevier | ||||||||
| ISSN: | 0165-1765 | ||||||||
| Official Date: | March 2018 | ||||||||
| Dates: |
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| Volume: | 164 | ||||||||
| Page Range: | pp. 5-9 | ||||||||
| DOI: | 10.1016/j.econlet.2017.12.028 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Access rights to Published version: | Restricted or Subscription Access |
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