A Cross-Sectional Analysis of Growth and Profit Rate Distribution: The Spanish Case

We analyse the time evolution of empirical cross-sectional distribution firms’ profit and growth rates. In particular, we conditional properties distributions depending on size firms business cycle phase. order to do so, employ Laplace as a benchmark, further considering Subbotin Asymmetric Exponential Power (AEP hereafter) distributions, capture potential asymmetry leptokurtosis distribution. Our results show that rates large are characterised by an asymmetric with parameters largely independent Small firms, instead, AEP distribution, which accounts for dependence phase cycle. observe largest more robust downturns compared small given their invariant distributional characteristics during crisis periods.