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Working paper No. 215. Identifying High-Growth Firms

PublicationWorking paper
Daniel Halvarsson, Företagandets villkor, Företagstillväxt, Gaseller, High-growth firms, Laplace distribution, Power law
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Abstract

This paper investigates the role(s) of high-growth firms (HGFs) in the robust growth-rate distribution. HGFs are identified as firms for which the growth-rate distribution exhibits power-law decay. In contrast to the traditional means of identifying HGFs, a distributional approach eliminates the need to specify an arbitrary growth rate or percentage share. The latter approach is illustrated by the growth-rate distribution for Swedish data on incorporated firms at the aggregate level and at the 2-digit industry level. The empirical results indicate that a power law is sometimes present in the growth-rate distribution and suggest that HGFs are rarer than previously thought.

Halvarsson, D. (2013). ”Identifying High-Growth Firms”. Ratio Working paper No. 215.


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