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Firm Dynamics: The Size and Growth Distribution of Firms

PublicationBook
Daniel Halvarsson, Företagandets villkor, Gaseller, Geometric stable distributions, Gibrat's lag, Laplace distribution, Persistence, Power law, Snabbväxare, Tillväxt, Zipf's lag
Firmdynamicsthesizeandgrowth
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Abstract

This thesis is about firm dynamics, and relates to the size and growth-rate distribution of firms. As such, it consists of an introductory and four separate chapters. The first chapter concerns the size distribution of firms, the two subsequent chapters deal more specifically with high-growth firms (HGFs), and the last chapter covers a related topic in distributional estimation theory. The first three chapters are empirically oriented, whereas the fourth chapter develops a statistical concept.
Data in the empirical section of the thesis come from two sources. First, PAR, a Swedish consulting firm that gathers information from the Swedish Patent and registration office on all Swedish limited liability firms. Second, the IFDB-database, which comes from the Swedish Agency for Growth Policy Analysis and comprises a selection of longitudinal register data from Statistics Sweden and contains business-related information on firms and establishments operating in Sweden, irrespective of their legal status.

Halvarsson, D. (2013). Firm Dynamics: The Size and Growth Distribution of Firms (Doctoral dissertation, Royal Institute of Technology, Stockholm, Sweden).

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Maximum Likelihood Estimation of Asymmetric Double Type II Pareto Distributions
Article (with peer review)Publication
Halvarsson, D.
Publication year

2020

Abstract

This paper considers a flexible class of asymmetric double Pareto distributions (ADP) that allows for skewness and asymmetric heavy tails. The inference problem is examined for maximum likelihood. Consistency is proven for the general case when all parameters are unknown. After deriving the Fisher information matrix, asymptotic normality and efficiency are established for a restricted model with the location parameter known. The asymptotic properties of the estimators are then examined using Monte Carlo simulations. To assess its goodness of fit, the ADP is applied to companies’ growth rates, for which it is favored over competing models.

Maximum Likelihood Estimation of Asymmetric Double Type II Pareto Distributions
Artikel (med peer review)Publication
Halvarsson, D.
Publication year

2020

Abstract

This paper considers a flexible class of asymmetric double Pareto distributions (ADP) that allows for skewness and asymmetric heavy tails. The inference problem is examined for maximum likelihood. Consistency is proven for the general case when all parameters are unknown. After deriving the Fisher information matrix, asymptotic normality and efficiency are established for a restricted model with the location parameter known. The asymptotic properties of the estimators are then examined using Monte Carlo simulations. To assess its goodness of fit, the ADP is applied to companies’ growth rates, for which it is favored over competing models.

Ratio Working Paper No. 327: Asymmetric Double Pareto Distributions: Maximum Likelihood Estimation with Application to the Growth Rate Distribution of Firms
Working paperPublication
Halvarsson, D.
Publication year

2019

Published in

Ratio Working Paper

Abstract

This paper considers a flexible class of asymmetric double Pareto distributions (ADP) that allows for skewness and asymmetric heavy tails. The inference problem is examined for maximum likelihood. Consistency is proven for the general case when all parameters are unknown. After deriving the Fisher information matrix, asymptotic normality and efficiency are established for a restricted model with the location parameter known. The asymptotic properties of the estimators are then examined using Monte Carlo simulations. To assess its goodness of fit, the ADP is applied to companies’ growth rates, for which it is unequivocally favored over competing models.

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