Search

Working Paper No. 197. Are high-growth firms one-hit wonders?

PublicationWorking paper
Daniel Halvarsson, Företagandets villkor, Gaseller, High-growth firms, Sven-Olov Daunfeldt, Transition Probabilities
Working Paper No. 197.
Download

Abstract

Most firms do not grow, and a small number of high-growth firms seem to create most new jobs. These firms have therefore received increasing attention among policymakers. The question is whether high-growth tends to persist? We investigate this question using data on 432,689 observations in Sweden during 1997-2008. We find that high-growth firms had declining growth rates in the previous 3-year period, and their probability of repeating high growth rates was very low. HGFs are essentially “one-hit wonders”, and it is thus doubtful whether policymakers can improve economic outcomes by targeting them.

Related content: Are high-growth firms one-hit wonders?

Daunfeldt, S-O. & Halvarsson, D. (2012). Are high-growth firms one-hit wonders? Evidence from Sweden. Ratio Working Paper No. 197.


Similar content

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.

Working Paper no. 328 Wholesale firms: A catalyst for Swedish exports?
Working paperPublication
Daunfeldt, S-O., Engberg, E., Halvarsson, D., Kokko, A. & Tingvall, P.
Publication year

2019

Published in

Ratio Working Paper

Abstract

This paper examines the role of wholesale firms as facilitators of exports for small and medium-sized Swedish businesses. Our findings suggest that wholesale firms do facilitate access to difficult markets located outside Europe. For exports of a particular good to a given market, we observe a positive correlation between the export volumes of wholesale and manufacturing firms. Finally, we present evidence that supports a prediction from recent trade models with differentiated firms, namely that wholesale firms can facilitate exports for firms that are not themselves capable of direct exports.

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.

Show more

Postgiro: 382621-1

|

Bankgiro: 512-6578