Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/193908
Authors: 
Mundt, Philipp
Oh, Ilfan
Year of Publication: 
2019
Series/Report no.: 
BERG Working Paper Series No. 145
Abstract: 
We propose a parsimonious statistical model of firm competition where structural differences in the strength of competitive pressure and the magnitude of return fluctuations above and below the system-wide benchmark translate into a skewed Subbotin or asymmetric exponential power (AEP) distribution of returns to capital. Empirical evidence from US data illustrates that the AEP distribution compares favorably to popular alternative models such as the symmetric or asymmetric Laplace density in terms of goodness of fit when entry and exit dynamics of markets are taken into account.
Subjects: 
return on capital
maximum entropy
asymmetric Subbotin distribution
JEL: 
C16
D21
L10
E10
C12
ISBN: 
978-3-943153-66-8
Document Type: 
Working Paper

Files in This Item:
File
Size
439.29 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.