Industry Dynamics and the Distribution of Firm Sizes: A Nonparametric Approach.

The aim of this paper is to analyze the evolution of the size distribution of young firms within some selected industries, using as a background three theories of the distribution of firm sizes that identify a process of passive learning (Jovanovic 1982), one of active learning (Ericson and Pakes 19...

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Publicado en:Southern Economic Journal Vol. 70; no. 3; pp. 443 - 467
Autores principales: Lotti, Francesca, Santarelli, Enrico
Formato: Artículo
Publicado: Southern Economic Association January 2004
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: January 2004
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        atl: Industry Dynamics and the Distribution of Firm Sizes: A Nonparametric Approach.
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        au:
          Lotti, Francesca
          Santarelli, Enrico
      su:
        Manufactured products
        Nonparametric statistics
        Size of industries
        Mathematical models
        Manufacturing industries
        Italy
      sug:
        subj:
          Italy
          Manufactured products
          Nonparametric statistics
          Size of industries
          Mathematical models
          Manufacturing industries
      ab: The aim of this paper is to analyze the evolution of the size distribution of young firms within some selected industries, using as a background three theories of the distribution of firm sizes that identify a process of passive learning (Jovanovic 1982), one of active learning (Ericson and Pakes 1995), and an evolutionary one (Audretsch 1995) in the postentry dynamics of business firms. We use a nonparametric technique, the kernel density estimator, applied to a data set from the Italian National Institute for Social Security (INPS), consisting of 12 cohorts of new manufacturing firms that were followed on a quarterly base for six years. We find that firm size distribution is in general skewed to the right, although different industries display different paths and speeds of convergence toward the limit distribution. This finding is fairly consistent with theories allowing for industry heterogeneity in terms of structural and technological features, which, in turn, result in industry-specific evolution of the size distribution of new entrants. Reprinted by permission of the publisher.
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    language: English
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