Estimating the Size Distribution of Firms Using Government Summary Statistics

Estimating the Size Distribution of Firms Using Government Summary Statistics

Using a maximum entropy technique, we estimate the market shares of each firm in an industry using the available government summary statistics such as the four-firm concentration ratio (C4) and the Herfindahl-Hirschmann Index (HHI). We show that our technique is very effective in estimating the distribution of market shares in 20 industries. Our results provide support for the recent practice o...

On the size distribution of business firms

The size distribution of business firms is explained using number and size of firms' constituent components. It is a lognormal distribution multiplied by a stretching factor which can lead to a Pareto upper tail. This result is confirmed empirically. © 2007 Elsevier B.V. All rights reserved.

Estimating the Saturated Hydraulic Conductivity of Granular Material, Using Artificial Neural Network, Based on Grain Size Distribution Curve

The Industry Life-Cycle of The Size Distribution of Firms∗

This paper analyzes the evolution of firm size distribution in the U.S. manufacturing industries over 35 years from 1963 to 1997. Firm size distribution undergoes systematic changes, the magnitude and the direction of which depend on whether an industry experiences a phase of growth, shakeout, stability, or decline. The observed patterns have implications for the theories of industry dynamics a...

Gradually Truncated Log-normal distribution - Size distribution of firms

Many natural and economical phenomena are described through power law or log-normal distributions. In these cases, probability decreases very slowly with step size compared to normal distribution. Thus it is essential to cut-off these distributions for larger step size. Recently we introduce the gradually truncated power law distribution to successfully describe variation of financial, educatio...