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Title:Investigating the exponential age distribution of firms PDF Logo
Authors:Coad, Alex
Issue Date:2010
Citation:[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [Volume:] 4 [Issue:] 2010-17 [Pages:] 1-30 [DOI/URN:] doi:10.5018/economics-ejournal.ja.2010-17
Series/Report no.:Economics 2010-17
Abstract:While several plots of the aggregate age distribution suggest that firm age is exponentially distributed, we find some departures from the exponential benchmark. At the lower tail, we find that very young establishments are more numerous than expected, but they face high exit hazards. At the upper tail, the oldest firms are older than the exponential would have predicted. Furthermore, the age distribution of disaggregated industries (such as the international airline industry) is less regular and can display multimodality. Although we focused on departures from the exponential, we found that the exponential was a useful reference point and endorse it as an appropriate benchmark for future work on industrial structure.
Subjects:Age distribution
exponential distribution
firm size distribution
survival
JEL:L20
L25
L11
Persistent Identifier of the first edition:doi:10.5018/economics-ejournal.ja.2010-17
URL of the first edition:http://www.economics-ejournal.org/economics/journalarticles/2010-17
Creative Commons License:http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type:Article
Appears in Collections:Economics: The Open-Access, Open-Assessment E-Journal - Journal Articles

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