Firm size dynamics in the aggregate economy
By: Esteban Rossi-Hansberg, Mark L.J. Wright.
Contributors: Wright, Mark L. J.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11261; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11261.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Business enterprises -- Size -- Mathematical models; Corporations -- Growth -- Mathematical models; Business failures x Mathematical models
Description: "Why do firm growth and exit rates decline with size? What determines the size distribution of firms? This paper 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 should have thinner tails, in sectors that use human capital less intensively, or correspondingly, physical capital more intensively.  In line with the theory, we document substantial sectoral heterogeneity in US firm dynamics and firm size distributions, which is well explained by variation in physical capital intensities"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 5/5/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.