Firm growth dynamics: The importance of large jumps

Yoshiyuki Arata 23 August 2014

a

A

How a firm grows is one of the important themes in the industrial organisation literature and has been discussed extensively. An influential paper is the seminal work by Gibrat (1931), which continues to receive much attention in the theoretical and empirical literature (for a review, see Sutton 1997). If the growth rate of a firm is defined as the difference in the logarithm of the firm’s size, Gibrat’s model is described by the following assumptions:

a

A

Topics:  Industrial organisation Productivity and Innovation

Tags:  firm growth rate, jump growth, radical innovation

Events