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Bottazzi, Giulio
Year of Publication: 
Series/Report no.: 
LEM Working Paper Series 2007/10
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.
Firm Growth
Gibrat's Law
Power law distribution
Laplace distribution
Document Type: 
Working Paper

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