Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/89356 
Year of Publication: 
2007
Series/Report no.: 
LEM Working Paper Series No. 2007/10
Publisher: 
Scuola Superiore Sant'Anna, Laboratory of Economics and Management (LEM), Pisa
Abstract: 
If business firms face a multiplicative growth process in which their growth rates are independent from their sizes, then these sizes cannot be distributed according to a stationary Pareto distribution. At the same time , the Laplace distribution of growth rates cannot be easily reconciled with a Pareto distribution of firm sizes. Recent contributions, using formal arguments, seems to contrast these statements. We prove that the proposed formal results are wrong.
Subjects: 
Firm Growth
Gibrat's Law
Power law distribution
Laplace distribution
Document Type: 
Working Paper

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