Firm Size, Life Cycle Dynamics and Growth Constraints

Firm Growth Rate Distributions, Firm Size Distributions and the Industry Life Cycle Combining Evolutionary Simulation and Empirical Analysis

Cover design by the author himself with inspiration from the many GNU publications. Among these the GNU Octave Manual, The GNU Plotting Utilities Documentation and The GNU Scientific Library Reference Manual. Most of these valuable publications are available under the GNU Free Documentation License. using GNU emacs as the T E Xfile editor. The editor was extended with AUC-T E X, which is a pack...

Financial Constraints and Firm Dynamics

The short run effects of financial constraints (FCs) on the expected growth rate of firms and their long-term implications on the evolution of the firm size distribution have been recently investigated by several scholars. In this paper we extend the analysis to a wider and largely unexplored range of possible FCs effects, including the autoregressive and heteroskedastic structure of the firm g...

Knowledge constraints and firm growth

Firms are constrained in growing knowledge capital due to frictions on the transfer of firm-specific knowledge (such as the process of recruiting and training skilled labor). Constrained firms must therefore forgo some positive-NPV projects during their growth. I embed micro-founded knowledge constraints in a q-theory model of a firm with two capital goods, structurally estimate the model, and ...

Does Entry Size Matter? The Impact of the Life Cycle and Technology on Firm Survival

Firm Size Dynamics in the Aggregate Economy ∗

Why do firm growth and exit rates decline with size? What determines the size distribution of firms? This paper presents a theory of firm dynamics that simultaneously rationalizes the basic facts on firm growth, exit, and size distributions. The theory emphasizes the accumulation of industry specific factors in response to industry specific productivity shocks. The emphasis on the accumulation ...