Nothing Special   »   [go: up one dir, main page]

  EconPapers    
Economics at your fingertips  
 

The Law of Proportionate Effect: A test based on the graphical model methodology

Marco Guerzoni, Luigi Riso and Marco Vivarelli ()

No 514, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: Using both regression analysis and an unsupervised graphical model approach (never applied before to this issue), we confirm the rejection of the Gibrat’s law when our firm-level data are considered over the entire investigated period, while the opposite is true when we allow for market selection. Indeed, the growth behavior of the re-shaped (smaller) population of the survived most efficient firms is in line with the Law of Proportionate Effect; this evidence reconciles early and current literature testing Gibrat’s law and may have interesting implications in terms of both applied and theoretical research.

Keywords: Gibrat’s Law; firm survival; market selection; firm growth (search for similar items in EconPapers)
JEL-codes: L11 (search for similar items in EconPapers)
Pages: 20
Date: 2023-03
New Economics Papers: this item is included in nep-bec and nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repec.dems.unimib.it/repec/pdf/mibwpaper514.pdf (application/pdf)

Related works:
Working Paper: The Law of Proportionate Effect: A test based on the graphical model methodology (2023) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:514

Access Statistics for this paper

More papers in Working Papers from University of Milano-Bicocca, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Matteo Pelagatti ().

 
Page updated 2024-09-27
Handle: RePEc:mib:wpaper:514