Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71847
Authors: 
Huber, Peter
Oberhofer, Harald
Pfaffermayr, Michael
Year of Publication: 
2012
Series/Report no.: 
Working Papers in Economics and Finance, University of Salzburg 2012-05
Abstract: 
Based on a three equations model for initial firm size, survival and firm growth we estimate firm-specific transition probabilities between size classes of the firm size distribution. This allows to analyze counterfactual scenarios that assess the impact of changes in exogenous variables on the intra-distribution dynamics of the firm size distribution. We find that a counterfactual decrease in average firm age increases the exit hazard of young firms, and at the same time reduces the probability to observe high growth firms. An increase in the industry-wide entry rate and an increase in market growth, by contrast, havw virtually no impact on the intra-distribution dynamics of the firm size distribution. Finally, a larger birth size increases the probability for the youngest and smallest firms to be fast growing ones.
Subjects: 
Firm growth
survival
entry size
high growth firms
counterfactual scenario analysis
sample selection
JEL: 
C24
D22
L11
L25
L26
M13
Document Type: 
Working Paper

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