Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89533
Authors: 
Sapio, Sandro
Thoma, Grid
Year of Publication: 
2006
Series/Report no.: 
LEM Working Paper Series 2006/09
Abstract: 
In this paper, we study the growth rates of 4-digit sectors in U.S. manufacturing. Two measures of size (value of shipments, value added) are considered, for each of the 38 years (1959-1996) of a sample of 458 4-digit sectors, drawn from the NBER Manufacturing Productivity database. Whole sample results are partly in line with firm growth facts: (i) sectoral growth rates are distributed according to heavy-tailed Subbotin distributions, with shape coefficient between 1.0 (Laplace) and 1.5; (ii) the volatility of growth rates is decreasing with respect to size, with a scaling exponent varying over time, but always between -0.20 and -0.10. Preliminary analyses on more homogeneous groups cast doubts on the evidence of scaling, but leave basically unaffected the distributional properties of sectoral growth. These results shed light on the role of inter-firm correlations, market concentration, and positive intersectoral feedbacks as drivers of meso-economic dynamics.
Subjects: 
Sectoral Growth
Subbotin Distribution
Scaling
U.S. Manufacturing
JEL: 
C10
O47
O51
Document Type: 
Working Paper

Files in This Item:
File
Size
420.42 kB





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